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Home My WebLink AboutItem 4 - Low-Income Prop Tx Ex.EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Applications for Three Low-Income Housing Tax Exemptions Resolution 4803 Approving a Low-Income Rental Housing Property Tax Exemption for Property Located at 2640-2694 Edgewood Drive, Eugene, Oregon (TL 17-04-12-33- 0600). (Metropolitan Affordable Housing Corporation - Green Leaf Village Development); Resolution 4804 Approving a Low-Income Rental Housing Property Tax Exemption for a Portion of the Property Located at 150 Santa Clara Avenue (TL 17-04-11-43-00800). (St. Vincent de Paul Society of Lane County); and Resolution 4805 Denying Approval of a Low-Income Rental Housing Property Tax Exemption for Property Located at March Chase Drive and Kinsrow, Eugene, Oregon (17-03-28-40-1406). (Public Private Partnerships Inc.) Meeting Date: August 9, 2004 Agenda Item Number: 4 Department: Planning and Development Staff Contact: Richie Weinman www. cl. eugene, or. us Contact Telephone Number: 682-5533 AGENDA ITEM SUMMARY City Council is asked to consider three resolutions related to low-income housing tax exemptions. Each resolution grants a twenty-year property tax exemption for a particular very-low-income housing project. BACKGROUND Council Action History The council has a history of supporting low-income housing tax exemptions and has approved virtually every request to date from either non-profit or for-profit developers. Policy Issues Since 1987, one of the City Council's annual goals has related to increasing the availability of low- income housing. A recent City Council goal of"Sustainable Community Development" refers to retaining a high quality of life. A prerequisite is affordable housing. For low-income households, this often requires subsidies. Support for low-income housing also is found in the City's Growth Management Goals and the adopted Housing and Urban Development (HUD) Consolidated Plan. This support recognizes the relationship between housing affordability and the community's economic vitality and social well-being. A key element in creating affordable housing is an exemption from property taxes. The twenty-year low-income housing tax exemption is available, in part, due to the City of Eugene's lobbying effort at L:\CMO\2004 Council Agendas\M040809\S0408094.doc the State Legislature. A property tax exemption plays a very significant role in reducing rents. In the past, the City has documented the monthly savings as a result of the exemption ranging from $89.00 per month to $178.00 per month at different developments. This makes a significant difference in the budget for a low-income household. Financial and/or Resource Considerations The City and other local taxing districts forgo revenue when property is exempted from taxes. Each of these projects represents new construction on previously undeveloped property. Therefore, the immediate loss of revenue is minimal. Other Background Information The following is a summary of the three projects requesting assistance: A. Apple Orchard Village 40 units, primarily for families with children 2640-2694 Edgewood Drive Metropolitan Affordable Housing Corporation B. Santa Clara Plaza 60 units, primarily for families with children 150 Santa Clara Avenue St. Vincent dePaul C. Willamette Gardens Apartments 240 units for households of various sizes 433 West 8th Avenue Public Private Partnerships (P3) Since 1992, the City has approved twelve low-income housing tax exemptions. Two are for-profit developments and ten are non-profit developments. These include: · Mary Skinner Apartments, 41 units (St. Vincent dePaul) · Hope Loop, 10 units (St. Vincent dePaul) · Mac McDonald 24 units (St. Vincent dePaul) · Woodleaf, 60 units (Metropolitan Affordable Housing) · 1080 ClarkStreet, 40 units (DennisMeili) · 2256-2264 Roosevelt, 24 units (Charles Shepard) · South Hilyard Terrace, 22 units (St. Vincent dePau0 · OakwoodManor, 72 units (St. Vincent dePau0 · Greenleaf Village, 34 units (Metropolitan Affordable Housing) · Oakleaf Village, 14 units (Metropolitan Affordable Housing) · Aurora Building, 54 units (St. Vincent DePau0 · Mainstream Apartments, 10 units (Mainstream Housing) Projects developed by the Lane County Housing Authority and Community Services Agency (HACSA) receive an automatic tax exemption under a different State statute. This tax exemption levels the playing field between the non-profit and public sector housing providers. To date, City Council has granted all applications for exemptions. L:\CMO\2004 Council Agendas\M040809\S0408094.doc Timing The tax exemption will apply to the tax year that begins on July 1, 2005. The council is asked to approve these now in order to meet tax assessor guidelines. OPTIONS The council may approve or deny any of the tax exemption requests. Based on Housing Policy Board recommendations, staff recommends approval of the resolutions in Attachment A, B, and C. Should the council wish to approve the exemption for P3's project, Attachment D is a resolution for approval. STAFF RECOMMENDATION The Housing Policy Board reviewed each of these proposals and supports two of them (Metro and St. Vincent DePaul). The proposal submitted by P3 was not supported because it both violates the Housing Dispersal Policy and has rents that are nearly market rate. The rationale is included in Attachment E. Staff supports the Housing Policy Board recommendations and this is reflected in the Planning and Development Director's report. SUGGESTED MOTION Move to approve Resolution 4803 approving a low-income rental housing property tax exemption for property located at 2640-2694 Edgewood Drive, Eugene, Oregon (TL 17-04-12-33-0600). (Metropolitan Affordable Housing Corporation - Green Leaf Village Development.) Move to approve Resolution 4804 approving a low-income rental housing property tax exemption for a portion of the property located at 150 Santa Clara Avenue (TL 17-04-11-43-00800). (St. Vincent de Paul Society of Lane County) Move to approve Resolution 4805 denying approval of a low-income rental housing property tax exemption for property located at March Chase Drive and Kinsrow, Eugene, Oregon (17-03-28-40- 1406). (Public Private Partnerships Inc.) ATTACHMENTS A. Proposed Resolution (Metropolitan Affordable Housing Corporation - Green Leaf Village Development.) B. Proposed Resolution (St. Vincent de Paul Society of Lane County) C. Proposed Resolution (denial) (Public Private Partnerships Inc.) D. Proposed Resolution (Public Private Partnerships Inc.) E. Reports from Planning and Development Director (three reports) F. Memo from John VanLandingham, Chair of Housing Policy Board G. Application submitted by St. Vincent DePaul H. Application submitted by Metropolitan Affordable Housing Corporation I. Application submitted by Public Private Partnerships L:\CMO\2004 Council Agendas\M040809\S0408094.doc FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman~ci.eugene.or.us L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 150 SANTA CLARA AVENUE, EUGENE, OREGON (TAX LOT 17-04-11-43-00800). (ST. VINCENT de PAUL SOCIETY OF LANE COUNTY). The City Council of the City of Eugene finds that: A. The St. Vincent de Paul Society of Lane County (705 S. Seneca Road, Eugene, Oregon 97402) is the owner of real property located at 150 Santa Clara Avenue, Eugene, Oregon (Tax Lot 17- 04-11-43-00800), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, 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 Director of the Planning and Development Department, as designee of the City Manager has submitted a Report and Recommendation to the Council that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City, including, if applicable: documentation that the housing units on the property were or will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption; documentation that the property is offered for rental solely as a residence for low-income persons; that the applicant is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council, applicable local plans, planning regulations, and the Metro Plan; and has executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of low-income occupants; and is otherwise in compliance with the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971; all as set forth in the Director's Report and Recommendation. C. The project consists of the development of sixty low-income rental housing units (19 one-bedroom, 22 two-bedroom, and 19 three-bedroom units). All of the property will be used for the purpose of providing low-income rental housing. 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, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of St. Vincent de Paul Society of Lane L:\CMO\2004 Council Agendas\M040809\S0408094.doc County for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at 150 Santa Clara Avenue, Eugene, Oregon (Tax Lot 17-04-11-43-00800), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: Upon completion of construction, the project shall consist of 60 low-income rental housing units (19 one-bedroom, 22 two-bedroom, and 19 three-bedroom units), and all of the property shall be used for the purpose of providing low-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 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 provide 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, 201 O, 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; and immediate termination, 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, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of ,2004. City Recorder L:\CMO\2004 Council Agendas\M040809\S0408094.doc Exhibit A L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT B RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 2640 - 2694 EDGEWOOD DRIVE, EUGENE, OREGON (TAX LOT 17-04-12-33-00600) (APPLE ORCHARD VILLAGE, LIMITED PARTNERSHIP/METROPOLITAN AFFORDABLE HOUSING CORPORATION, GENERAL PARTNER). The City Council of the City of Eugene finds that: A. Apple Orchard Village, Limited Partnership/Metropolitan Affordable Housing Corporation, General Partner (1430 Pearl Street, Eugene, Oregon 97401) is the owner of real property located at 2640 - 2694 Edgewood Drive, Eugene, Oregon (Tax Lot 17-04-12-33- 00600), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, 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 Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City, including, if applicable: documentation that the housing units on the property were or will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption; documentation that the property is offered for rental solely as residences for Iow-income persons; that the applicant is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council, applicable local plans, planning regulations, and the Metro Plan; and has executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of Iow-income occupants; and is otherwise in compliance with the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971; all as set forth in the Director's Report and Recommendation. C. The project consists of the development of 40 Iow-income rental housing units (8 studio, 8 one-bedroom and 24 two-bedroom units). All of the property will be used for the purpose of providing Iow-income rental housing. L:\CMO\2004 Council Agendas\M040809\S0408094.doc 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, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of Apple Orchard Village, Limited Partnership/Metropolitan Affordable Housing Corporation, General Partner for an ad valorem property tax exemption under the City's Low- Income Rental Housing Property Tax Exemption Program for the property located at 2640 - 2694 Edgewood Drive, Eugene, Oregon (Tax Lot 17-04-12-33-00600), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: The project shall consist of 40 Iow-income rental housing units (8 studio, 8 one- bedroom, and 24 two-bedroom units)and all of the property shall be used for the purpose of providing Iow-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 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 provide 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; and immediate termination, 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 Iow-income rental housing and it is used for any purpose other than the provision of Iow-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, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. L:\CMO\2004 Council Agendas\M040809\S0408094.doc Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of ,2004. City Recorder L:\CMO\2004 Council Agendas\M040809\S0408094.doc Exhibit A L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT C RESOLUTION NO. A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT MARCHE CHASE DRIVE AND KINSROW AVENUE, EUGENE, OREGON (TAX LOT 17-03-28-40-1406). (PUBLIC PRIVATE PARTNERSHIPS, INC.). The City Council of the City of Eugene finds that: A. Public Private Partnerships, Inc. (4800 SW Macadam, Suite 309, Portland, Oregon 97239) is the owner of real property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, 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 project, as proposed, will consist of 240 units of low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units) and all of the property will be used for the purpose of providing low-income rental housing. C. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be disapproved and the exemption denied. In making that recommendation, the Director found that although the applicant submitted all materials, documents and fees required by the application and the City, and that the project is otherwise in compliance with applicable local plans, planning regulations, the Metro Plan, and the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, the project is not in compliance with all of the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council because the project is inconsistent with Policy 2 of the City of Eugene's Housing Dispersal Policy which recommends housing developments of no more than 60 units. D. The intergovernmental Housing Policy Board, an advisory committee comprised of elected officials and appointed volunteers, also reviewed the application and unanimously recommended denial based upon the project's noncompliance with Policy 2 of the Housing Dispersal Policy and because the proposed rent levels are very close to market-rate. 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, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development L:\CMO\2004 Council Agendas\MO40809\SO408094.doc Department, the City Council hereby denies the application of Public Private Partnerships for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference. Section 2. The applicant has the right to appeal the denial of its application in the manner set forth in ORS 34.010 to 34.100. 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 hereof. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of ,2004. City Recorder L:\CMO\2004 Council Agendas\M040809\S0408094.doc Exhibit A L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT D RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT MARCHE CHASE DRIVE AND KINSROW AVENUE, EUGENE, OREGON (TAX LOT 17-03-28-40-1406). (PUBLIC PRIVATE PARTNERSHIPS, INC.). The City Council of the City of Eugene finds that: A. Public Private Partnerships, Inc. (4800 SW Macadam, Suite 309, Portland, Oregon 97239) is the owner of real property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, 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 project, as proposed, will consist of 240 units of low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units) and all of the property will be used for the purpose of providing low-income rental housing. C. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be disapproved and the exemption denied. In making that recommendation, the Director found that although the applicant submitted all materials, documents and fees required by the application and the City, and that the project is otherwise in compliance with applicable local plans, planning regulations, the Metro Plan, and the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, the project is not in compliance with all of the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council because the project is inconsistent with Policy 2 of the City of Eugene's Housing Dispersal Policy which recommends housing developments of no more than 60 units. D. The intergovernmental Housing Policy Board, an advisory committee comprised of elected officials and appointed volunteers, also reviewed the application and unanimously recommended denial based upon the project's noncompliance with Policy 2 of the Housing Dispersal Policy and because the proposed rent levels are very close to market-rate. E. The City of Eugene's Housing Dispersal Policy, which was adopted by Council Resolution 4477 on January 4, 1996, is aspirational, rather than prescriptive, and discourages subsidized housing developments of more than 60 units. However, the City Council may balance the policy against other City concerns and policies, such as the need for additional low-income rental housing units. F. In reviewing the Director's findings, the Report and Recommendation, and the Housing Dispersal Policy, the City Council finds that the need for additional low-income rental housing units L:\CMO\2004 Council Agendas\M040809\S0408094.doc warrants exceeding the Housing Dispersal Policy's 60-unit limitation; that the project is otherwise in conformance with applicable local plans, planning regulations, the Metro Plan, the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, and the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council; and that the applicant has submitted all materials, documents and fees required by the application and the City, including, but not limited to: documentation that the housing units on the property will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption, documentation that the property is offered for rental solely as a residence for low-income persons, and documentation that the applicant has previously executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of low-income occupants. 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, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of Public Private Partnerships, Inc. for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: Upon completion of construction, the project shall consist of 240 low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units), and all of the property shall be used for the purpose of providing low-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 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 provide 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; and immediate termination, 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 L:\CMO\2004 Council Agendas\M040809\S0408094.doc 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, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of ,2004. City Recorder L:\CMO\2004 Council Agendas\M040809\S0408094.doc Exhibit A L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT E REPORT AND RECOMMENDATION of the Director of the Planning and Development Department Application of the Santa Clara Limited Partnership (St. Vincent DePaul of Lane County Inc.'s) Santa Clara Plaza housing at 150 Santa Clara Avenue For Low Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) The Director of the Planning and Development Department of the City of Eugene finds that: 1. St. Vincent DePaul, owner of real property located at 150 Santa Clara Avenue, Eugene, Oregon (Tax Lot 17-04- 11-43-00800) as more particularly described in its Application submitted 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 (Section 2.937 to 2.940 of the Eugene Code, 1971). 2. I have reviewed the application and specifically find: 2.1 The applicant has submitted all materials and documents required by the City, including but not limited to: 2.1.1 Documentation that the housing umts on the property were constructed after 2/12/90; 2.1.2. Documentation that the required rent payment reflects the full value of the property tax exemption; 2.1.3 Documentation that the property is offered for rental solely as a place for low-income households; 2.2 The applicant is compliance with the policies set forth in the Standards and Guidelines adopted by Resolution 4623 of the City Council and has previously executed the required Consent to Inspection of Premises and Rent Regulatory Agreement, which contains a provision requiring certification of income levels of low-income occupants. 2.3 The proposed project is otherwise consistent with provisions of the Eugene Code, 1971, and other adopted City policies and regulations. 2.4 The property, when construction is complete, will consists of 60 low-income rental housing units (19 one-bedroom, 22 two-bedroom, 19 three-bedroom units). All of the property will be used for the purpose of providing low-income rental housing. Therefore, based on the above findings, the proposed project is in conformance with all applicable local plans, planning regulations, the Metropolitan Area General Plan, and the criteria set forth in the City's adopted Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this __ day of July, 2004. Thomas G. Coyle Executive Director Planning and Development Department, City of Eugene L:\CMO\2004 Council Agendas\M040809\S0408094.doc REPORT AND RECOMMENDATION of the Director of the Planning and Development Department Application of the Apple Orchard Village Limited Partnership (Metropolitan Affordable Housing Corporation's Inc.) Apple Orchard Village housing at 2640-2694 Edgewood Drive For Low Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) The Director of the Planning and Development Department of the City of Eugene finds that: 1. Metropolitan Affordable Housing Corporation, owner of real property located at 2640-2694 Edgewood Drive, Eugene, Oregon (Tax Lot 17-04-11-43-00800) as more particularly described in its Application submitted pursueant 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 (Section 2.937 to 2.940 of the Eugene Code, 1971). 2. I have reviewed the application and specifically find: 2.1 The applicant has submitted all materials and documents required by the City, including but not limited to: 2.1.1 Documentation that the housing umts on the property were constructed after 2/12/90; 2.1.2. Documentation that the required rent payment reflects the full value of the property tax exemption; 2.1.3 Documentation that the property is offered for rental solely as a place for low-income households; 2.2 The applicant is compliance with the policies set forth in the Standards and Guidelines adopted by Resolution 4623 of the City Council and has previously executed the required Consent to Inspection of Premises and Rent Regulatory Agreement, which contains a provision requiring certification of income levels of low-income occupants. 2.3 The proposed project is otherwise consistent with provisions of the Eugene Code, 1971, and other adopted City policies and regulations. 2.4 The property, when construction is complete, will consists of 40 low-income rental housing units (8 studio, 8 one-bedroom, 24 two-bedroom units). All of the property will be used for the purpose of providing low-income rental housing. Therefore, based on the above findings, the proposed project is in conformance with all applicable local plans, planning regulations, the Metropolitan Area General Plan, and the criteria set forth in the City's adopted Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this __ day of July, 2004. Thomas G. Coyle Executive Director Planning and Development Department, City of Eugene L:\CMO\2004 Council Agendas\M040809\S0408094.doc REPORT AND RECOMMENDATION of the Director of the Planning and Development Department Application of the Public Private Partnership's (P3) Willamette Gardens Apartments at Marche Chase Drive and Kinsrow For Low Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) The Director of the Planning and Development Department of the City of Eugene finds that: 1. P3, owner of real property located at Ma~cche Chase Drive and Kinsrow, Eugene, Oregon (Tax Lot 17-03-28-40-1406) as more particularly described in its Application submitted 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 (Section 2.937 to 2.940 of the Eugene Code, 1971). 2. I have reviewed the application and specifically find: 2.1 The applicant has submitted all materials a~d documents required by the City, including but not limited to: 2.1.1 Documentation that the housing units on the property will be cons/xucted after 2/12/90; 2.1.2. Documentation that the required rent payment will reflect the full value of the property tax exemption; 2.1.3 Documentation that the property is offered for rental solely as a place for low-income households; 2.2 The applicant has previously executed the required Consent to Inspection of Premises and Rent Regulatory Agreement, which contains a provision requiring certification of income levels of low-income occupants. 2.3 The property, when construction is complete, will consists of 240 units of low-income rental housing units (a mixture of one, two, and three bedroom units). All of the property will be used for the purpose of providing low- income rental housing. 2.4 The project, as proposed is in conformance with planning regulations, lite Me/xopolitan Area General Pla~, and the criteria set forth in the City's adopted Standards and Guidelines for Low-income Rental Housing Property Tax Exemption with one exception: 2.4.1 The project, at 240 units, is not in compliance with the intent of/he City of Eugene's Housing Dispersal Plan. The plan recommends projects of no more than 60 units for families. The intergovernmental Housing Policy Board reviewed this project and, based on the Housing Dispersal Plan, recommends against the tax exemption. 2.5 The proposed project is otherwise consistent with provisions of the Eugene Code, 1971, and other adopted City policies a~d regulations. Therefore, based on a review of/he findings, given the relevance of the Housing Dispersal Plan to this proposal, I recommend that the application not be approved. Dated this __ day of July, 2004. Thomas G. Coyle Executive Director Planning and Development Department, City of Eugene L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT F MEMO To: Eugene City Council From: John VanLandingham, chair, Housing Policy Board Date: July 12, 2004 Subject: Housing Policy Board Position Regarding Property Tax Exemption for P3 The Housing Policy Board voted unanimously on June 28, 2004, not to recommend that the City Council grant a property tax exemption to P3 for its proposed 240 rental unit development in the Chase Gardens area. Here are my reasons for my vote. 1. It is my belief, as someone who has worked with the City of Eugene Housing Dispersal Policy for 25 years, that P3's project would violate Dispersal Policy 2, the 60-unit maximum size limit. 2. I do not agree with P3's argument that it is exempt from the Dispersal Policy because its income limitation (as required by the federal tax credits that P3 seeks) is 60 percent of median income, as opposed to the Dispersal Policy's income limitation of 50 percent. As staff noted in its memo, among those 240 units some of them are likely to have residents whose incomes are at or below 50 percent of median income. 3. The Dispersal Policy is written to allow the Council to balance the policy's limitations with "other City concerns and policies." On one previous occasion, the HPB recommended to the Council that it not apply the 60-unit cap to an HPB-supported project on Green Lane in Santa Clara. In that case, the project was targeted to serve families at incomes significantly below 50 percent of median income, and the project was only slightly more than the 60-unit cap. In the HPB's view, both factors warranted an exception from the Dispersal Policy's 60-unit cap. Neither is true with P3's project. 4. The income issue - that P3's project will serve a higher income bracket than do HPB- supported projects - is significant. We currently enjoy the support of private landlords in our affordable housing efforts; one is a long-time member of the HPB. But we have that support because private landlords understand that HPB projects target a population whose incomes are below that of the population that most private landlords serve - in other words, HPB projects are not competing with existing units owned by the private sector. Given P3's higher rents, that cannot be said for its project. And given the current relatively high - for Eugene - vacancy rate for rental units, publicly subsidizing the competition will create bad feeling among private landlords. L:\CMO\2004 Council Agendas\M040809\S0408094.doc NOTE: There are four different median income limits involved here: a. The federal low income tax credit program has an income limit of 60 percent of median income. Apparently P3 hopes to obtain an allocation of these credits, which are awarded by the State in a very competitive process. Other HPB-supported projects are likely to be in that competition. b. The low income housing property tax exemption, which P3 is seeking from the City, also has a 60 percent of median income limit for eligibility. This figure derives from State law. ORS 307.515, .517 c. The City's Dispersal Policy uses a figure of 50 percent of median income, to define low-income families. d. The Housing Policy Board supports projects whose rents are affordable to families at incomes significantly below 50 percent of median income, generally below 40 percent. L:\CMO\2004 Council Agendas\M040809\S0408094.doc ATTACHMENT G St. Vincent de Paul Santa Clara Plaza Property Tax Exemption Program for Low-income Rental Housing I Application Pacini Revised 2004 For more information, please contact Richie Weinman at 541.682.5533 City of Eugene Eugene Planning & Development Department 99 West 10th, Eugene OR 97401 Property Tax Exemption for Low-income Rental Housing GENERAL INFORMATION The City of Eugene's Low-income Rental Housing Property Tax Exemption Program (LITEs) is intended to provide incentives for the construction of new rental housing for Iow-income persons within the city by exempting the property from ad valorem taxes for a period not to exceed twenty (20) years. WHO MAY APPLY? Any person or entity owning or purchasing property upon which Iow-income rental housing units were constructed after February 12, 1990, or will be constructed within two years after approval of an application (under current provisions, construction must be completed by July 1,2010). Non-profit public benefit corporation or religious corporations (see Exhibit A - Definitions) must meet specific criteria as requested in the application. WHEN TO APPLY? An application must be filed on or before December 1 of the calendar year immediately preceding the tax year for which an exemption is requested. If the property is acquired after November 1, an application may be submitted within 30 days after the date of acquisition, but no later than January 1 of the next calendar year. Your application packet must consist of the following documents: · Application form (use City form) · Exhibit A - Definitions (use City form) · Schedule 1 - Documentation of Public Benefit Corporation or Religious Corporation Status · Schedule 2 - Proof of Ownership of Interest in the Property · Schedule 3 - Rent Regulatory Agreement (use City form) · Schedule 4 - Consent to Inspection of Premises (use City form) · Schedule 5 - Certification of Income Levels of Low-income Occupants (use City form) · Schedule 6 - Documentation that the Required Rent Reflects the Full Value of the Property Tax Exemption · Schedule 7 - Documentation that the Property Will be Offered to or Occupied Solely by Low-income Persons · Schedule 8 - Documentation that the Applicant Expends no more than 10% of its Annual Income from Residential Rentals for Purposes other than the Acquisition, Maintenance, or Repair of Residential Rental Property for Low-income Persons (Public Benefit or Religious Corporations only) Richie Weinman Wednesday, July 28, 2004 City of Eugene 99 W. 104 Avenue Eugene Oregon 97401 Re: property tax exemptions for affordable housing The property tax abatement for affordable housing granted by the City of Eugene is a critical component in the development of our housing projects. The tax abetment helps us make housing projects pencil out initially and contributes to the overall affordability of the project. The tax exemption allow projects to move forward that would otherwise not be financially feasible and helps ensure that rental rates remain low enough to serve members of the community at the lower end of the earning spectrum who are desperately in need of housing. Property tax assessment is nuanced and complex, but simple calculations indicate that property tax abatement saves St. Vincent de Paul $92,867.00 per year in property taxes on our 60 unit affordable housing development, Santa Clara Village and directly results in more affordable rents for our tenants. The savings calculations are based on hard construction costs and assessed value of the land and millage rates provided by the county assessors office. Millage rates and assessed values are subject to change. In addition, new bond measures can increase the property tax assessed and the retirement of existing bonds can cause an decrease in tax assessed. The abatement of property taxes directly benefits those in our communities who are most in need of help and aid in the provision of desperately needed housing. This housing is often the critical factor in allowing people to move towards a better life, rather than continuing to spiral downward into homelessness. Regards, Robert Ault St. Vincent de Paul of Lane County 541-687-5820 ext 139 rault~svdp.us Property Tax Exemption for Low-income Rental Housing APPLICATION FORM Property Tax Exemption for Low-income Rental Housing Sections 2.937 to 2.940 of the Eugene Code, 1971 Application Fee $ Includes Lane County Assessor processing fee of $ , which will be refunded to the applicant if this application is not approved. You may be subject to other reasonable costs, including appraisal costs, if such costs are incurred by the City of County in processing this application, which must be paid prior to final approval being granted. INSTRUCTIONS All applicants must complete Sections A and B and must also attach the appropriate Schedules. The application must be signed before a Notary Public. If you do not supply all the required information and schedules, and submit the required fees, this application shall be returned to you and deemed not to have been filed. SECTION A- APPLICANT INFORMATION 1. Name: St. Vincent de Paul Society of Lane County Inc. Address: 705 S Seneca Eugene, OR 97402 Telephone: 541-687-5820 ext 139 Email Address: rault@svdp.us Contact Person: Robert Ault 2. Is the Applicant: a. Yes X No__ A public benefit corporation? b. Yes No__ A religious corporation'? SECTION B - PROPERTY 1. Name of Property Owner: St. Vincent de Paul Society of Lane County Inc. Property Address: 705 S Seneca Eugene, OR 97402 Assessor's Number: 1651056 Attach as Schedule 2 Applicant's proof of ownership, or if not owner, proof of Applicant's interest under a purchase contract. Portion of property for which exemption is sought: X or The following described portion: 3. Description of purpose of project: The Provision of affordable housing X All of the property for which exemption is sought will be used for this purpose __ The following described portion of the property will be used for this purpose: Project Construction Dates: Commencement of Construction: May 2004 Anticipated Completion: June 30, 2005 4. I X Yes No__ The Rent Regulation Agreement attached as Schedule 3 and I Consent to Inspection of Premises attached as Schedule 4 have been executed and Applicant agrees to maintain the same in effect throughout the duration of the tax exemption period. 5. I Yes__ No X__ Are you aware of any conflict with the City's Housing I Dispersal Policy? If yes, please provide any explanation of mitigating circumstances that should be considered by the City. 6. I Yes No X Will the development cause displacement of Iow-income I persons? If yes, please explain mitigating factors that should be considered by the City. 7. Yes No X._Will the development cause destruction of historic property? If yes, please provide information as to any permit therefore or exception granted by the City Council. X Yesm No The portion of the property for which exemption is sought is or I will be offered for rent. X Yes__ No The portion of the property for which exemption is sought is or will be occupied solely by Iow-income persons. If yes, please attach a Certification of Income Levels of Low-income Occupants as Schedule 5. 10. I Yes X No The required rent payment reflects, or will reflect the full value I of the property tax exemption. Attach documentation as Schedule 6. 11. Describe how the tax exemption will benefit project occupants: Reduction of costs borne by owner will directly result in lower rents to tenants. 12. I X Yes No The property is unoccupied, and the attached Schedule 7 documents~'-at it will be offered for rental solely as a residence for Iow- income residents. Yes No XThe property is occupied, and the attached Schedule 7 docu--~ents that it is occupied solely as a residence for Iow-income residents. 13. I Yes X No Attached as Schedule 8 is documentation that the Applicant I expends no more than ten percent (10%) of its annual income from residential rentals for purposes other than the acquisition, maintenance, or repair of residential rental property for Iow-income persons. The foregoing application, together with the application fee set forth above, is hereby submitted requesting an exemption from ad valorem taxes for the property described herein for a period of twenty (20) years, commencing with the tax year 2005. If this application is submitted on behalf of a corporation, association, or partnership, the individual signing this application specifically represents that he/she is authorized to act on behalf of the corporation, association, or partnership. DATED this ~ ~ day of ~--)-~ ,2004 St. Vincent de Paul of Lane County Inc. Print Name of Applicant <::~jnature of Applicant or Authorized Representative of Applicant Terrence R. McDonald, Executive Director Name and Title of Authorized Representative STATE OF OREGON ) )§ COUNTY OF LANE ) On the ~ day of ~ ,2004, personally appeared before me the with. in ., ~, __ / named/ "1'~~~ [/~-- ~.(~(~.,~' , an~' ' - ing/r~be his/her.,~.___~ voluntar~ act and deed. ~piration! -/'~ / ,..,- .. SEAL · ,~,BJC -OREGON NO 363123 ~:;~ES NOV,18, 2006 Property Tax Exemption for Low-income Rental Housing EXHIBIT A - DEFINITIONS See ORS 65.001(31 ) and 65.001(33) Definitions on Exhibit A 1. LOW-INCOME. Income at or below 60 percent (60%) of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development (HUD). 2. LOW-INCOME RENTAL HOUSING. Rental housing constructed after February 12, 1990 which is occupied by Iow-income person(s). 3. PUBLIC BENEFIT CORPORATION. A domestic corporation which: a. Is formed as a public benefit corporation pursuant to ORS 65.044 to 65.067, is designated as a public benefit corporation by a Statute, is recognized as tax exempt under Section 501 (c)(3) of the Internal Revenue Code of 1986 or is otherwise organized for a public or charitable purpose; b. Is restricted so that on dissolution it must distribute its assets to an organization organized for a public or charitable purpose, a religious corporation, the United States, a state or a person which is recognized as exempt under Section 501 (c)(3) of the Internal Revenue Code of 1986; and c. Does not come within the definition of "religious corporation." 4. RELIGIOUS CORPORATION. A domestic corporation which is formed as a religious corporation pursuant to ORS 65.044 to 65.067, is designated a religious corporation by a Statute, or is organized primarily or exclusively for religious purposes. Property Tax Exemption for Low-income Rental Housing LOW-INCOME HOUSING TAX CREDIT PROGRAM RENTS The following Median Family Income (MFI) information for Lane County was excerpted from the State of Oregon's Low-income Housing Tax Credit Program Rents website. This information is updated annually by the State of Oregon and is based on HUD's published Section 8 Income Limits. Using 1 person for 0 bedroom and 1.5 persons per bedroom for 1-4 bedroom units, deduct utility allowances from these rents to get gross allowable rents. Consult tax advisor to assure your management plan's compliance with program Section 8 income limits County % 0 1 2 3 4 5 Bdrm MFI Bdrm Bdrm Bdrm Bd4m Bdrm Lane 50% $475 $508 $611 $705 $787 $868 60% 15570 15610 15733 15846 15945 151042 See the State of Oregon's Low-income Housing Tax Credit Program website for more information about the rent level information: http:llwww.hcs.state.or, uslhousinqllihtclindex.html Property tax exemption for Low income rental housing Schedule 1 - Documentation of Public Benefit Corporation Internal Revenue Service Department of the Treasury District P.O. Box 2350 Los Ange es Calif. 900.53 Director Person to Contact Gilda Lewis Telephone Number: St. Vincent De Paul Society of (2i3) 894-2336 Lane Co. , Inc. Refer Reply to : 705 S. Seneca EO(0909) 93 Eugene, OR 97402-2730 Oate~_[3 I i§93' RE: St. Vincent. De Paul Society of Lane Co., Inc. EIN: 93-0454786 Gentlemen: This letter is in response to your request for a copy of the determination letter for the above named organization. Our records indicate that this organization was recogn'~zed to be exempt from Federal Income Tax in March 1946 as- described in Internal Revenue Code Section 501(c) (3). It is further classified as an organization that is not a private foundation as defined in Section 509(a) of the code, because it is an organization described in Section 170(b) (1) (A) (i). The exempt status for the determination letter issued in March 1946 continues to be in effect. If you need further assistance, please contact our office at the above address or telephone number. S~ncerely, ~ /GI. LDA_ LEWIS Disclosure Assistant / Property tax exemption for Low income rental housing Schedule 2 - Proof of Ownership ~ne C~nLy Dee~ Ind Rmeords ee~ae~ee4ee R~D Cnt=2 SLnGG ~S~ ~,OO S~.O0 S20,~ SPEC~ W~TY DEED - STATUTORY FO~ Subject ~: E~n~, condi~ ~ K~i~o~ of ~O~ON OF APPLI~ ~ USE ~WS ) ~. C~ of L~. ) I Mg~IN ~VO ~ I 02/20/05 08:51 FAX 541 .0._82_.5~S4 ,, EUGENE CITY HALL After r~cordin~ retu~ ~o: City R~c~rder ~MO~~ OF BETWEEN: Ci~ of ~g~e, ~ ~egon m~cipal co~a~ion (~) ~: St. V~c~t de Paal SocicW of~e a no~rofit co~oraiion in thc State of O~gon (SL ~cm0 On this date, City has conv~-y~d to St_ ¥1nc~.nt ~hc real p~p~ d~c~bed on at~ched E~bit A (Pr~c~) p~su~t to a S~ta Cl~a Pl~a L~d ~t A~m~t be~n Ci~ ~d St. Vinc~/~d Gr~t A~eni). ~su~ ~o ~e L~d ~tA~c~ent, S~ta CI~ PI~ h~ a~ to con,et on ~c Prop~ 60 n~ to~ouse style ~, for v~ Iow ~d lower ~comc f~]i~s ~ one d~i~aed resident ~cr ~mt ~oject). B. The ~d ~t A~men~ r~uircs St. V~cent to ei~ reconv~ the Pmp~ or pay ~ m~ v~ of~e Prbp~, subjcot to adj~s, ~ prodded in the a~~, in th~ ev~t ~c ~j~ct is not completed wit~ 24 mon~ or d~g ~o ~ 20 ~s a~ ~mpl~o~ less ~ ~1 p~t..of ~c housohold t~ts ~ng ~c Project ~ not q~h~ as ve~ low or low~ mco~ f~. 1. Ob~fion~ Run Wit~ thc ~. St. V~cent's ob~gatious ~ ~ I~o~ ~t A~ts ~ with ~he l~d md ~ b~d~ upon Si. Vin~t ~d SI. V~c~t's s~cs~ ~d 2. ~. ~ty's d~ts ~d~ ~c ~d Gr~t ~th~ nd it=~ of thc hol~ of any ~ de~ or mo~gage on lhc ~ope~ which sects ~m~chon or pcplot' ~cin~ for improv~ to thc P~p~. rec~d~lc fo~, a subor~a~on a~m~t sa~sfacm~ ~ ~g hold~ of~y tach ~ d~d or mo~e co~E ~c s~bordinae ~ of City's ~gh~ 3. ~dUm. T~s is a m~om~ only to ~e ~d ~ ~c~ and do~ no~ by itse~, consli~te ~ a~t bc~e~ ~c ~o p~es. ~c fi~ ~d obligation of~e p~ ~ gov~ by ~e L~d Gr~t A~ment. Oivi~i.n *f Chief Ds~.ty Clerk 02/20/04 o8:51 _P.A_.X ~4=~_~ ~82 ~1.94 EUGENE CITY HALL City of Eugene St. Viucent By: Y: (sign~t'~e) (si~atu~) D~mis M. Taylor T~ce McDon~d Ci~ M~ag~ ,~ EXCCU~Ve D~ecto~ Y STATE OF O1LEGON ) Cotmty of Lane ) ~ q Th/s mstrument was a~knowled$~d befor~ mc on~ ,2004, by Dennis M. /-~., STATE OF OI~GON ) Count~ of Lane ) This insmuncnt was ~,,imowlcd~ before me on ~~, 20C~, by T~c-ncc IL M~Donaid ~ Ex~utive D~e~ot of St. V~t ~ ~atd Soci~ of~e Co~. C~ NO. ~1~ Sa~t~ Cica Plaza Mcn~mmium of Ag~eer~:~t - 2 Property Tax Exemption for Low-income Rental Housing SCHEDULE 3 - RENT REGULATORY AGREEMENT PARTIES: City of Eugene, a municipal corporation of the State of Oregon (City) and St. Vincent de Paul of Lane County Inc. (Applicant) RECITALS: A. Pursuant to the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, and the Standards and Guidelines approved by Resolution No. 4327 of the City Council, the City administers a program that provides an exemption from ad valorem taxes for new Iow-income rental housing. B. Applicant has submitted an application for property tax exemption for property located at 150 Santa Clara Avenue, Eugene Oregon 97404 (Subject Property), to which this Agreement is attached as Schedule 3, as required by Section 5.1 of the above-referenced Standards and Guidelines. Now, therefore, the parties agree as follows: 1. Report. Applicant agrees that on or before February 1 of the first tax year to which this exemption applies, and on or before February 1 of each year thereafter for the duration of the tax exemption period, it will provide to the City a report that certifies under oath: a. The total number of rental units on the Subject Property which are occupied and unoccupied as of December 31 of the preceding calendar year; b. The income levels of the occupants of the rental units; c. That unoccupied units are being offered for rental solely as a residence for Iow-income persons; and d. That the required rental payment(s) reflect the full value of the property tax exemption granted to Applicant for the Subject Property. 2. Inspections. Applicant agrees that the City may, at its option, inspect the premises at regular intervals to verify the accuracy of the reports required herein and compliance with other provisions of this Agreement. The parties may agree in writing that inspections occur on specific dates, and absent such an agreement, City may perform inspections upon five (5) days' prior written notice to Applicant. 3. Documentation. Applicant agrees to provide City upon ten (10) days' prior written request, documentation of all facts certified in the report required in Section 1 of this Agreement. 4. Notices. Any notice required under this Agreement shall be in writing, and directed to City in care of the Planning & Development Department, 99 West th 10 , Eugene OR 97401, and to the Applicant at the address indicated above. 5. Effective Date. This Agreement shall become effective upon approval of the Applicant's application for ad valorem property tax exemption to which this is appended, and shall remain in effect throughout the duration of the tax exemption period. 6. Termination of A.qreement. This Agreement shall terminate, with no further action required by either party upon: 6.1 The expiration of the tax exemption period; 6.2 Termination of the tax exemption by the City Council for Applicant's failure to: 6.2.1 Complete construction within the time required, including any extensions granted; 6.2.2 Comply with the provisions of ORS 307.515 to 307.523, the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, or the Standards and Guidelines adopted by Resolution No. 4327, or this Agreement; or 6.2.3 Comply with any conditions imposed in the Resolution approving the tax exemption application. 6.3 A determination by the County Assessor that a change of use to other than that allowed has occurred, resulting in an immediate termination of the tax exemption by the County Assessor. DATED this ~ day of ~'-c~. 20 ~ ¥ St. Vincent de Paul of Irate County Inc. Print Na~ of ~ Print Name`& Title of Authorized Representative 705 South Seneca, Eugene, OR 97402 Address of Authorized Representative Accepted this day of 20 CITY OF EUGENE Tom G, Coyle Executive Director Planning & Development Department Property Tax Exemption for Low-income Rental Housing SCHEDULE 4 - CONSENT TO INSPECTION OF PREMISES The undersigned, as Applicant for an exemption from ad valorem taxes for the property located at 150 Santa Clara Avenue, Eugene, Or 97404 , hereby consents that upon approval of the application to which this is appended and occupancy of the Iow-income rental unit(s), authorized representatives of the City of Eugene may, for the duration of the tax exemption period, inspect the above premises at reasonable times, and without prior notice, to ensure that the premises are maintained in decent, safe, and sanitary condition for the occupants thereof. Applicant acknowledges that this consent and the obligation to maintain the premises in a decent, safe, and sanitary condition are material to the City's consideration of Applicant's request for exemption from ad valorem taxes for the described property. DATED this ~ day of ~,T~-~ 2004 St. Vincent de Paul of Lane County Name~Applicant~ By: Si~g_natu re~rize~e p rose ntative (~f Applicant Terrence R. McDonald, Executive Director Name & Title of Authorized Representative 705 S Seneca Eugene, OR 97402 Address of Authorized Representative Property Tax Exemption for Low-income Rental Housing SCHEDULE 5 CERTIFICATION OF INCOME LEVELS OF LOW-INCOME OCCUPANTS 60% of Area Median Income for Eugene, Oregon These figures are updated annually by HUD 1 $21,360 2 $24,420 3 $27,48O 4 $30,540 5 $33,000 6 $35,4O0 7 $37,860 8 $42,320 I hereby certify that the rental units for which this exemption is sought are not occupied by, nor will they be offered for rental units to persons whose incomes exceed the levels reflected above for Iow-income persons. DATED this ~ o day of ~.~,,J~._ ,2004 St. Vincent de Paul of Lane County Inc. Property tax exemption for Low- income housing Schedule 6 documentation that rent reflects the full value of Property tax exemption For the property located at 150 Santa Clara Avenue, Eugene Oregon 97404 the owner St. Vincent de Paul of Lane County Inc. is responsible for the payment of property taxes. The owner is a charitable non-profit organization. If the owner is successful in having the property taxes abated, the entire value of that property tax abatement will go towards reduction of tenant rent. Signature of Applicant Dated this 30 day of k7 c, ~ 2004 Property tax exemption for Low income rental housing Schedule 7 - Proof that Property will be offered to or occupied solely by low- income persons Santa Clara V~dlage 3- 8 August ~6, 2002 S~ V"ra~t de Paul Soaety ~ ~, Inc. PROJECT DESCRIPTION You must Include the following Information with the Project Concept: Site control document · A zoning letter from the local jurisdiction that evidences the intended development is an outright use or if the use is allowable with conditions. · If the intended development is allowed only with conditions, provide evidence that application for conditional use has been made. Unit density of site per local zoning code: Maximum # units 90 Minimum # units none Proposed # units 60 Size of site: (one acre = 43,560 square feet) Acres: 3 acres or Square Feet: Are aH utilities presently at If no, what needs to be brought to site? (yes/no) no the site? Storm sewer Proiect Rent and Income Levels: Rent % - number of units Income % - number of units Over 81% 61% to 80% of median 51% to 60% of median 41% to 50% of median 40 46%--40 units 31% to 40% of median 20 40%-20 units 1% to 30% of median No Income Total Units: 60 Number Of Years to be Affordable: 50 If the number of rental and income units do not match in a percentage classification in the Project Rent and Income Levels table above, tell us the reasoning behind your choices. Ail unit rents are set at 40-46 % of ar~ median income Are the residential units available to the general public? (yes/no) yes If no, please explain: Will the project have a community room, common area or commercial space? (yes/no) yes If so, please describe the nature and intended use of these rooms. Santa Clara WdIage 3- 7 August 16, 2002 AUTHORIZATION AND ACCEPTANCE FORM : :~': :i:)'" (This form to be completed by all applicants) By this action the Owner/Board of Directors of St. Vincent de Paul Society of Lane County, Inc. accepts the responsibilities and requirements of tax credit and grant programs applied for in this application for the project located at: Santa Clam and River Road, Eugene, OR In accordance with Section II of the corporation's by-laws, effective this date, authorization has been given by the Owner/Board of Directors to the following named parties: ': 1) To apply for programs or grants in this application: Terrence R. McDonald, Executive Director : Name & Title ~re -'?~ Name & Title ~. 2) To execute all legal documents associated with the tax credit and grant~.ralgl~s (including the i encumbrance of valuable property owned by the corporation):(') Terrence R. McDonald, Executive Director ; ) DonaldL. Lamb, BoardChair ~ ~/~/~~ Name & Title Sign~tOre - - 3) To sign all draw requests, monthly progress reports and miscellaneous form..g associa~ the tax credit and grant programs awarded to the project. L. Laureen Tracy, Chief Financial Officer Amanda Saul, Housing Development Director · ,~ Name & Title Si~'hture SIGNED: Donald L. Lamb Owner/Board Chair Name Sign'atu~e · St. Vincent de Paul Society of Lane County, Inc. :..:1 Organization Date If a Resolution is required to authorize any of the above, please provide a copy of the resolution with this application. Property tax exemption for Low income rental housing Schedule 8 - Documentation that applicant expend no more than 10% ... SOURCES OF FUNDING Project Name: Santa C!ara Plaza Date: 05/04/04 HOME Match Anticipated or Firm Funding Source ;(check) Committed Conditional Tentative Commitment Date OHCS GRANTS & EQUITY LIHTC Equity X 5,784,000 HOME Trust Fund HELP Alcohol & Drug Free Housing LI Weatherization Program OHCS LOANS Tax Exempt Bonds HOME Trust Fund Alcohol & Drug Free Housing ORR NON-OHCS GRANTS City HOME 425,000 City Waivers X 15,000 EWEB Waivers X 25,000 City Land X 450,000 Lane County Road Funds X 150,000 NON-OHCS LOANS Permanent Loan with OAHTC from NOAH 867,000 APPLICANT CONTRIBUTIONS Cash Deferred Development Fee X 40,404 OTHER: Cashflow During Rehab Super Good Cents X 21,50(3 Business Energy Tax Credits X 25,679 EWEB Incentives X 23,725 SUBTOTALS $'1,105,404 $937,904 $5,784,000 TOTAL FUND SOURCES $7,827,308 Surplus or Gap 0 (Note: Total Fund Sources must match "Total Project Cost" from Uses of Funding page.) Other HCS non-equity sources: Oregon Affordable Housing Tax Credit (OAHTC) $350,000 (loan amount) Seed Money Advance Loan (loan amount) Predevelopment Loan (loan amount) Other HOME Match (e.g., tax exemption) Source: City of Eugene $700,000 (amount) Fail 2003 Funding Pro Forma 1 of I OHCS USES OF FUNDING Project Name:ISanta Clara Plaza Date: 05/04/04 IRS Setaside 20/50 Number of Units: 60 Residential Square Footage: 52,673 Common Areas: 2,019 These ~vo columns are for 3ommercial/other LIHTC APPLICANTS ONLY Total Square Footage: 54,692 COSTS (A) Cost per Cost as Estimated Gross Original Cost per Square % of Reasonably Expended by Application Unit Foot Total Funding Source Expected Basis Carryover Date Acquisition Costs Purchase Price: Land 450,000 7,500 8.23 5.7% City of Eugene ~ $450,000 Improvements 0 0.00 0.0% Liens and Other Taxes 12,750 213 0.23 0.2% $12,750 iCIosing/Recording 2,000 33 0.04 0.0% HOME $2,000 $2,000 Extension Fees 0 0.00 0.0% Other: 0 0.00 0.0% Acquisition Costs Subtotal: $464,750 7,746 8.50 5.9°/, $14,750 $452,000 Construction Costs Off-site Work 150,000 2,500 2.74 1.9% County Road Funds ~1 $122,500 On-site Work 714,121 11,902 13.06 9.1% HOME/LIHTC 714,121 EWEB line extension 29,322 489 0.54 0.4% 29,322 Demolition 0 0.00 0.0% 0 Residential Building 4,275,983 71,266 78.18 54.6% HOME/LIHTC/SGC/BETC 4,275,983 $1,820,000 Commercial Space/Building 0 0.00 0.0% ~ Common Use Facilities 0 0.00 0.0% HOME/LIHTC $0 Elevator 0 0.00 0.0% $0 Laund~/Facilities 0 0.00 0.0% $0 Storage/Garages 0 0.00 0.0% $0 Landscaping 0 0.00 0.0% HOME/LIHTC $0 General Conditions 0 0.00 0.0% $0 Contractor Overhead 299,000 4,983 5.47 3.8% HOME/LIHTC $299,000 $36,640 Contractor Profit 0 0.00 0.0% HOME/LIHTC $0 $73,240 Contingency 272,885 4,548 4.99 3.5% LIHTC $272,885 $91,025 FF&E (Common Area Furnishings) 0 0.00 0.0% $0 Other: Performance Bond 0 0.00 0.0% HOME/LIHTC $0 Construction Costs Subtotal: $5,741,311 95,689 104.98 73.3% $5,591,311 $2,143,405 Development Costs Land Use Approvals 3,000 50 0.05 0.0% HOME $3,000 $3,000 Building Permits/Fees 290,000 4,833 5.30 3.7% HOME/VVaivers/LIHTC $290,000 $290,000 System Development Charges incld above #VALUE! ;;;;;/;;;;/;;; #VALUE! incld above Market Study 3,500 58 0.06 0.0% HOME $3,500 $3,500 Environmental Report 1,500 25 0.03 0.0% HOME $1,500 $1,500 Lead Based Paint Report 0 0.00 0.0% $0 Asbestos Report 0 0.00 0.0% $0 Soils Report (Geotechnical) 3,315 55 0.06 0.0% HOME $3,315 $3,315 Survey 2,000 33 0.04 0.0% HOME $2,000 $2,000 Marketing/Advertising 5,000 83 0.09 0.1% LIHTC ~ $0 Insurance 36,555 609 0.67 0.5% HOME $36,555 $36,555 Other: 0 0.00 0.0% Other: 0 0.00 0.0% General Fees I [ Architectural 165,000 2,750 3.02 2.1% HOME/LIHTC $165,000 $150,000 Landscape Archtecture 15,952 266 0.29 0.2% $15,952 Engineering 30~000 500 0.55 0.4% HOME/LIHTC $30,000 $5,000 Legal/Accounting 50,000 833 0.91 0.6% LIHTC $20,000 $50,000 Cost Certification 1,000 17 0.02 0.0% LIHTC $1,000 $0 Appraisals 9,500 158 0.17 0.1% HOME $9,500 $9,500 Special Inspections/Testing 0 0.00 0.0% $0 Developer Fee 525,000 8,750 9.60 6.7% LIHTC $525,000 $150,000 Consultant Fee 0 0.00 0.0% Lock Rate Fee 2,175 36 0.04 0.0% LIHTC $0 $2,175 Project Management Fee 0 0.00 0.0% Other: Audit 4,500 75 0.08 0.1% Fall 2003 Funding Pro Forma 1 of 2 OHCS USES OF FUNDING I Santa Clara I I I Project Name: Plaza Date: 05/04/04 I I IRS Setaside 20/50 Number of Units: 60 Residential Square Footage: 52,673 Common Areas: 2,019 These two columns are for Commemial/other LIHTC APPLICANTS ONLY Total Square Footage: 54,692 COSTS (A) Cost per Cost as Estimated Gross Original Cost per Square % of Reasonably Expended by Application Unit Foot Total Funding Source Expected Basis Carryover Date Construction Loan Costs/Fees Lender Inspection Fees 6,750 113 0.12 0.1% LIHTC $6,750 $2,700 Lender Title Insurance 30,000 500 0.55 0.4% HOME $30,000 $30,000 Lender Legal Fees 0 0.00 0.0% $0 Loan Fees 39,030 651 0.71 0.5% LIHTC $39,030 $25,5O0 Loan Closing Fees 0 0.00 0.0% $0 Property Taxes (Construction Period) 0 0.00 0.0% $0 Insurance 0 0.00 0.0% $0 Bridge Loan Fees I Bridge Loan Legal 0 0.00 0.0% Bddge Loan Trustee 0 0.00 0.0% Bridge Loan Underwriting 0 0.00 0.0% I Permanent Loan Fees I Perm. Loan Fee 15,000 250 0.27 0.2% LIHTC ~ $5,625 Perm. Loan Closing Fees 0 0.00 0.0%I Tax Credit Fees Tax Credit Fee 34,750 579 0.64 0.4% HOME $34,750 $34,750: Tax Credit Cost Certification 0 0.00 0.0% Tax Credit Legal/Advisor Fee 0 0.00 0.0% Cost of Bond Issuance 0 0.00 0.0% Negative Arbitrage (1.50%) 0 0.00 0.0% Bond Cost Certification 0 0.00 0.0% Other. 0 0.00 0.0% Interest I Construction Period 165,175 2,753 3.02 2.1% LIHTC $156,120 $30,000 Bridge Loan 58,545 976 1.07 0.7% LIHTC ~ $0 Other: 0 0.00 0.0% Other: 0 0.00 0.0% ReserveslContin~lency I Lease Up/Operating 72,000 1,200 1.32 0.9% LIHTC $0 Development 32,000 533 0.59 0.4% HOME $32,000 $3,222 Tenant Relocation 0 0.50 0.0% Deposit to Replacement Reserves 0 0.00 0.0% Contigency Escrow Account (3%) 0 0.00 0.0% Other: rent up reserve 20,000 333 0.37 0.3% $20,000 Other: 0 0.00 0.0% Development Costs Subtotal: $1,621,247 27,021 29.64 20.7% $1,424,972 $838,342 TOTAL PROJECT COST $7,827,308 130,455 143.12 100.0% $7,031,033 $3,433,747 Surplus or Gap (0) Developers Fee Percentage 7.19% FOR LIHTC PROJECTS I Total of the amount to be expended by Carryover Date $3,433,747 I I Divided by Total Project Costs $7,827,308 Equals the percent of estimated cost expended by Carryover Date 43.87% Fall 2003 Funding Pro Forma 2 of 2 OHCS HOUSING OPERATING BUDGET - EXPENSES Pr°ject Name: Santa Clara Pliza [ Date: 05/04/04 Annual Inflation Rate Factor: 3.00% Annual per Annual Operating Expenses U nit 1 2 3 4 5 10 15 20 30 I insurance 254 15,000 15,450 15,914 16,391 16,883 19,572 22,689 26,303 35,348 Utilities:(common areas) I I Gas/Oil 0 0 0 0 0 0 0 0 0 Electric 132 7,800 8,034 8,275 8,523 8,779 10,177 11,798 13,677 18,381 Water & Sewer 424 25,000 25,750 26,523 27,318 28,138 32,619 37,815 43,838 58,914 Garbage Removal 163 9,600 9,888 10,185 10,490 10,805 12,526 14,521 16,834 22,623 Cable TV I 0 0 0 0 0 0 0 0 0 Repairs 280 16,500 16,995 17,505 18,030 18,571~ 21,529 24,958 28,933 38,883 General Maintenance 220 13,000 13,390 13,792 14,205 14,632: 16,962 19,664 22,796 30,635 Landscape Maintenance 122 7,200 7,416 7,638 7,868 8,104 9,394 10,891 12,625 16,967 Replacement Reserve 254 15,000 15,450 15,914 16,391 16,883 19,572 22,689 26,303 35,348 Proper'b/Management: I I On-site 243 14,352 14,783 15,226 15,683 16,153 18,726 21,709 25,166 33,821 Contracted (Off-Site) 427 25.200 25,956 26,735 27,537 28,363 32,880 38,117 44,188 59.385 :)rofessional Services: I [ I Resident Services 169 10.000 10,300 10,609 10,927: 11,255 13,048 15,126 17,535 23,566 Case Management 0 0 0 0 0 0 0 0 0 Le~lal 0 0 0 0 0 0 0 0 0 Accounting 150 0 0 0 0 0 01 0 Compliance Monitoring Fees 25 1.500 1,545 1,591 1,639 1,688 1.957 2,269 2.630 3,535 Office&Administration I 150 8,850 9,116 9,389 9,671 9,961 11,548 13,387 15,519 20.857 Advertising/Marketing & Promotion 0 0 0 ~ 0 0 0 0 0 (~ Unit Turnover 203 12.000 12,360 12,731 13,113 13,506 15,657 18,151 21,042 28,27g Taxes(non-real estate) 0 0 0 0 0 0 0 0 (~ Real Estate Taxes 0 0 0 0 0 0 0 0 0= Payroll Taxes 0 0 0 0 0 0 0 0 0 Other: Audit 0 0 0 0 0 0 0 0 0 Other: 73 4,300 4,429 ~ 4.562 4,699 4,840 5,611 6,504 7.540 10,133 Other: 0 0 0. 0 0 0 0 0 0 Total Annual Operating Expenses: 3,291 185,302 190,862 196,587 202,485 208,560 241,778 280,287 324,929 436,677 Less Debt Service: I Permanent loan Rate ITerm (Years) Loan Amount 7.25% 30 867,000 1,203 70,974 70.974 70,974 70,974 70,974 70,974 70,974 70,974 70,974 OAHTC Permanent loan Rate ITerm (Years) Loan Amount 3.25% 30 350,000 310 18,279 18,279 18,279 18,279 18,279 18,279 18,279 18,279 0 Portion of perm loan wlo OAHTC (if applicable) 7.25% 30 517,000 717 ~ 42,322 42,322 42,322 42,322 42,322 42,322 42,322 42,322 42,322 Deferred Developer Fee Rate ITerm (Years) Loan Amount 1.00% 15 57,249 70 4,112 4,112 4,112 4,112 4,112 4,112 4,112 0 0 Amortized Debt (HOME Loan,, I Partnership Loans,etc.) I Rate ITerm (Years) ILoan Amount 5.46% 30 425,000 489 23,205 23,205 23,205 23,205 23,205 23,205 23,205 23,205 23,205 1 0 0 0 0 0 0 0 0 0 (~ 1 0 0 0 0 0 0 0 0 0 (~ I WITHOUT OAHTC I Effective Gross Income: 4,768 281,306 286,933 292,671 298,525 304,495 336,187 371,178 409,810 499,556 Total Annual Operating ExI ,enses: 3,291 185,302 190,862 196,587 202,485 208,560 241,778 280,287 324,929 436,677 Net Operatin~ Income: 1,477 96,004 96,071 96,084 96,040 95,936 94,409 90,891 84,881 62,879 Primary Debt Service 1,203 70,974 70,974 70,974 70,974 70,974 70,974 70,974 70,974 70,974 Total Debt Service 1,761 98,290 98,290 98,290 98,290 98,290 98,290 98,290 94,179 94,179 Cash Flow Per Year (284) (2,286) (2,219) (2,206) {2,25t) {2,355) (3,881) (7,399) (9,297) (31,300) Primary Debt Coverage Ratio 1.23 1.35 1.35 1.35 1.35 1.35 1.33 1.28 1.20 0.89 Total Debt Coverage Ratio 0.84 0.98 0.98 0.98 0.98 0.98' 0.96 0.92 0.90 0.67 I WITH OAHTC ] Effective Gross Income: 4,521 266,760 272,095 277,537 283,088 288,750 318,803 351,984 388,619 473,724 Total Annual Operating Ex~ )enses: 3,291 185,302 190,862 196,587 202,485 208,560 241,778 280,287 324,929 436,677 Net Operating Income: 1,231 81,458 81,234 80,950 80,603 80,190 77,025 71,698 63,690 37,047 ~fimaq/ Debt Service 1,027 60,601 60,601 60,601 60,601 60,601 60,601 60,601 60,601 42,322 Total Debt Service: 1,585 87,917 87,917 87,917 87,917 87,917 87,917 87,917 83,806 65,527 Cash Flow Per Year: (355) (6,459) (6,684) (6,968) (7,315) (7,727) (10,892) (16,220) (20,116) (28,480) Pdmary Debt Coverage Ratio: 1.20 1.34 1.34 1.34 1.33 1.32 1.27 1.18 1.05 0.88 Total Debt Coverage Ratio: O. 78 0.93 0.92 0.92 0.92 0.91 0.88 0.82 O. 76 O. 57 Fall 2003 Funding Pro Forma 1 of 1 OHCS ATTACHMENT H Metropolitan Affordable Housing Corp Apple Orchard Property Tax Exemption Program for Low-income Rental Housing Application Packet Revised 2004 For more information, please contact Richie Weinman at 541.682.5533 City of Eugene Eugene Planning & Development Department 99 West 10th, Eugene OR 97401 Property Tax Exemption for Low-income Rental Housing GENERAL INFORMATION The City of Eugene's Low-income Rental Housing Property Tax Exemption Program (LITEs) is intended to provide incentives for the construction of new rental housing for Iow-income persons within the city by exempting the property from ad valorem taxes for a period not to exceed twenty (20) years. WHO MAY APPLY? Any person or entity owning or purchasing property upon which Iow-income rental housing units were constructed after February 12, 1990, or will be constructed within two years after approval of an application (under current provisions, construction must be completed by July 1, 2010). Non-profit public benefit corporation or religious corporations (see Exhibit A - Definitions) must meet specific criteria as requested in the application. WHEN TO APPLY? An application must be filed on or before December 1 of the calendar year immediately preceding the tax year for which an exemption is requested. If the property is acquired after November 1, an application may be submitted within 30 days after the date of acquisition, but no later than January 1 of the next calendar year. Your application packet must consist of the following documents: · Application form (use City form) · Exhibit A - Definitions (use City form) · Schedule 1 - Documentation of Public Benefit Corporation or Religious Corporation Status · Schedule 2 - Proof of Ownership of Interest in the Property · Schedule 3 - Rent Regulatory Agreement (use City form) · Schedule 4 - Consent to Inspection of Premises (use City form) · Schedule 5 - Certification of Income Levels of Low-income Occupants (use City form) · Schedule 6 - Documentation that the Required Rent Reflects the Full Value of the Property Tax Exemption · Schedule 7 - Documentation that the Property Will be Offered to or Occupied Solely by Low-income Persons · Schedule 8 - Documentation that the Applicant Expends no more than 10% of its Annual Income from Residential Rentals for Purposes other than the Acquisition, Maintenance, or Repair of Residential Rental Property for Low-income Persons (Public Benefit or Religious Corporations only) Property Tax Exemption for Low-income Rental Housing APPLICATION FORM Property Tax Exemption for Low-income Rental Housing Sections 2.937 to 2.940 of the Eugene Code, 1971 Application Fee $ .... Includes Lane County Assessor processing fee of $ , which will be refunded to the applicant if this application is not approved. You may be subject to other reasonable costs, including appraisal costs, if such costs are incurred by the City of County in processing this application, which must be paid prior to final approval being granted. INSTRUCTIONS All applicants must complete Sections A and B and must also attach the appropriate Schedules. The application must be signed before a Notary Public. If you do not supply all the required information and schedules, and submit the required fees, this application shall be returned to you and deemed not to have been filed. SECTION A - APPLICANT INFORMATION Name: Apple Orchard Village, Limited Partnership Address: c/o Metropolitan Affordable Housing Corporation 1430 Pearl Street, Eugene, Oregon 97401 Telephone: (541) 683-1751 Email Address: metropolitanaf f l@qwest, net Contact Person: Richard Herman, Executive Director · Yes ~1 No 13 A public benefit corporation? Yes 13 No ~ A religious corporation? SECTION B - PROPERTY il. I NameofProperty Owner: Apple Orchard Village, Limited Partnership Prope~y Address: 2640 - 2694 Edgewood Dr. & 200, 220 Ed~ewood Dr. Eugene, Oregon 97404 - Assessor's Number: 17-04-12-33-00600 Parce]] ;2 &~ Attach as Schedule 2 Applicant's proof of ownership, or if not owner, proof of Applicant's interest under a purchase contract. 2. Portion of property for which exemption is sought: ~ All or ~ The following described portion: Includes the two NEDCO houses. NEDCO will apply for their property tax exemption once they are ~n t~]~ ~n ~h~ ~w~ hm,SeS J, 3. Description of purpose of projem: - 40 units of affordable apartment housin~ plus a community building - 2 single family houses to be rehabed and sold by NEDCO. All of the property for which exemption is sought will be used for this purpose The following described .portion of the property will be used for this purpose: Project Construction Dates: Commencement of Construction: May 2004 Anticipated Completion: July 2005 J 4. J ~ Yes ~ No The Rent Regulation Agreement attached as Schedule 3 and Consent to Inspection of Premises attached as Schedule 4 have been executed and Applicant agrees to maintain the same in effect throughout the duration of the tax exemption period. I 5. [3 Yes ~ No Are you aware of any conflict with the City's Housing Dispersal Policy? If yes, please provide any explanation of mitigating circumstances that should be considered by the City. J 6. 1~1 Yes [3 No Will the development cause displacement of Iow-income persons? J If yes, please explain mitigating factors that should be considered by the City. J Originally there were four houses. Three houses were vacated and the J tenant in one house was relocated. Two houses have been demolished. J Ail matters were handled in full compliance with Federal and City requirements. J 7- [3 Yes ~ No Will the development cause destruction of historic property? If yes, please provide information as to any permit therefore or exception granted by the City Council. J. 8. J ~ Yes [3 No The portion of the property for which exemption is sought is or will I be offered for rent. J 9. ~ Yes [3 No The portion of the property for which exemption is sought is or will be occupied solely by Iow-income persons. If yes, please attach a Certification of Income Levels of Low-income Occupants as Schedule 5. J 10. J l~ Yes [3 No The required rent payment reflects, or will reflect the full value of the I . property tax exemption. Attach documentation as Schedule 6. J 11. J Describe how the tax exemption will benefit project occupants: t Without the exemption the project would not have been financially at 30,40 and 50 percent rents. Residents receive 100% benefit from the property tax exemption. J 12. I~1 Yes [3 No The property is unoccupied, and the attached Schedule 7 documents that it will be offered for rental solely as a residence for Iow-income residents. [3 Yes ~ No The property is occupied, and the attached Schedule 7 documents that it is occupied solely as a residence for Iow-income residents. 13. 131 Yes ~ No Attached as Schedule 8 is documentation that the Applicant expends no more than ten percent (10%) of its annual income from residential rentals for purposes other than the acquisition, maintenance, or repair of residential rental property for Iow-income persons. The foregoing application, together with the application fee set forth above, is hereby submitted requesting an exemption from ad valorem taxes for the property described herein for a period of twenty (20) years, commencing with the tax year 20 05 If this application is submitted on behalf of a corporation, association, or partnership, the individual signing this application specifically represents that he/she is authorized to act on behalf of the corporation, association, or partnership. DATED this ~ day of July ,2004 Apple Orchard Villager Limited Partnership / Metropolitan Affordable Housing Corp., Print Name of Applicant General Partner Signature of A/ppli~ant or Authorized Representative of Applicant Name and Title of Authorized R~presentative ~'' -,'~"'- ' OFFICIAL SEAL STATE OF OREGON ) I ~ SARAN L VAIL I NOTARYPUBLIC-OREGON ) § I '\~] COMMISSION NO 342713 COUNTY OF LANE ) ! ~ MYOOMMISSION EXPRES ~',~RU~R~4~¢;O~.!. J On the '¢7'7~ day of _.~~, ,20 ~ L/ , personally appeared before me the within nam~'d ~'/'d".c,~,, ~c-/' ~'/~. /'/,,~(",,.,¢., , and affirmed the foregoing to be hisser voluntary/act~and~ed. Property Tax Exemption for Low-income Rental Housing EXHIBIT A - DEFINITIONS See ORS 65.001(31) and 65.001(33) Definitions on Exhibit A 1. LOW-INCOME. Income at or below 60 percent (60%) of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development (HUD). 2. LOW-INCOME RENTAL HOUSING. Rental housing constructed after February 12, 1990 which is occupied by Iow-income person(s). 3. PUBLIC BENEFIT CORPORATION. A domestic corporation which: a. Is formed as a public benefit corporation pursuant to ORS 65.044 to 65.067, is designated as a public benefit corporation by a Statute, is recognized as tax exempt under Section 501 (c)(3) of the Internal Revenue Code of 1986 or is otherwise organized for a public or charitable purpose; b. Is restricted so that on dissolution it must distribute its assets to an organization organized for a public or charitable purpose, a religious corporation, the United States, a state or a person which is recognized as exempt under Section 501 (c)(3) of the Intemal Revenue Code of 1986; and c. Does not come within the definition of "religious corporation." 4. RELIGIOUS CORPORATION. A domestic corporation which is formed as a religious corporation pursuant to ORS 65.044 to 65.067, is designated a religious corporation by a Statute, or is organized primarily or exclusively for religious purposes. INTERNAL REVENUE SERVICE DEPARTMENT OFT HE TREASURY DISTRICT DIRECTOR 450 GOLDEN GATE AVENUE, MS 7-4-01 SAN FRANCISCO, CA 94102-7406 Employer Identification Number: Ca~e Number: 956180058 METROPOLITAN AFFORDABLE HOUSING Contact Person: CORPORATION PATRICE WHANG C/O JEAN TATE Contact Telephone Number: 1600 OAK STREET (415) 522-6053 EUGENE, Ok 97405 ~ Our Letter Dated: September 25, 1992 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi). Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section S09(a) (1) organization. As of January 1, 1984, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). You are required to file Form 990 only if your gross receipts each year are normally more than $25,000. For guidance in determining whether your gross receipts are "normally" more than $25,000, see the instructions for Form 990. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. A penalty of $10 a day is charged when a return is filed late, unless there is reasonable cause for the delay. However, the maximum penalty charged cannot exceed $5,000 or 5 percent of your gross receipts for the year, whichewer is less. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Letter 1050 (DO/CG) -2~ FIETROPOLITAN AFFORDABLE HOUSING Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, Acting District Director Letter 1050 (DO/CG) £z£'d ~I~£89:0± 9900 6~£ I~S ~OSO~ N~II]OdOS±BW:WOS3 ~0:£~ ~ss-i-]n~ ,~, ~ ""~ ': ^, ~.., THIS SPACE RE. SERV=D FOR RECORD-~'S USE After recording return to: CERTIFIED TO BE A TRU~ ILND CORRECT Apple Orchard Village Limited COPy OF,THE~ OJ~IGI~ Partnership ON.__.....~ ~- ~-.~t -CORDED Eugene, OR 97q05 FiRc,3TAMEF~iC ~11 ~ ~t to ~ follo~ng ApplepaKne~hipOrchard Village Limited Eugene, OR g7405 File No.: N~-828~7-OR] (pb) D~te: M~y 26, 20~ STATUTORY WARRANTY DEED Hetropolitan Affordable Housing Corporation, a Oregon Non-Profit Corporation, Grantor, conveys and warrants to Apple Orchard Village Limited Partnership, a Oregon Limited Partnership, Grantee, the following described real property free of liens and encumbrances, except as specifically set forth herein: See attached Exhibit "A" This property is free from liens and encumbrances, EXCEPT: 1. Covenants, condition~, restrictions and/or easements, if any, affecting tiUe, which may appear in the public record, including those shown on any recorded plat or survey. THIS INSTRUMENT WILL NOT ALLOW USE OF THE PROPERTY DESCRIBED IN T~..S INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNiNG OR ACCEPTING THIS INSTRUMENT, THE PERSON ACC~UIP, ING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CI'TY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND TO DE'TERM[NE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACT~_S AS DEFINED IN ORS 30.930. The true consideration for this conveyance is $290~000.O0. (Hem ~mp~ ~th requimmem~ of OR~ 9:].030) Dated this .. '~ day of ~'CJ.//'~_ ,20 O ~. Peg~ 1 of 2 APN: c-,~,.~ory Wan'anty Deed F~ie No.: NC~-82S67-OR1 (pb) - c~'~tinued D, at~: 05/26/2004 Metropolitan Affordable Housing Corp~.'ation, an Oregon Non-Profit Corporation By: Richard L. Larson. President STATE OF Oregon ) County of Lane ) This instrument was ackn...~vledged before me on this"'~'lr'~ day of ~ ~,~"~ ~..~. , 20(..~ by PJchard L. Larson as President of Hetropol~tan Affordable Housing Corporation, an Oregon non-profit corporatin, on behalf of th~ corporation. ~%~~ ~~, Notary Public for Oregon Page 2 of 2 Exhibit A Legal Description Tract "A" Parcels 1, 2 and 3 Partition Plat No. 2004-P1785, recorded .Tune 3, 2004, Reception No. 2004-041971, Official Records of Lane Count),, Oregon. Tract "B" A non-exclusive easement of storm water facilities as more particularly set forth in Easement Agreem~t, recorded .Tanuary 29, 2003, Reception No. 2003-008144, Official Records of Lane County, Oregon, subject to the terms and provisions set forth therein. Tract "C" A non-exclusive easement for private access as more particularly set forth in Private Access Easement Agreement, recorded April 27, 2004, Reception No. 2004-030610, Official Records of Lane County, Oregon, subject to the terms and provisions set forth therein. Tract "D" A non-exclusive easement for private road as more particularly set forth in Edgewood Drive Private Road Agreement, recorded April 27, 2004, Reception No. 2004-030611, Official Records of Lane County, Oregon, subject to the terms and provisions set forth therein. Property Tax Exemption for Low-income Rental Housing SCHEDULE 3 - RENT REGULATORY AGREEMENT PARTIES: City of Eugene, a municipal corporation of the State of Oregon (City) and ADDle Orchard Village, LP Metropolitan Affordable Housin8 Corp.~ GP (Applicant) RECITALS: A. Pursuant to the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, and the Standards and Guidelines approved by Resolution No. 4327 of the City Council, the City administers a program that provides an exemption from ad valorem taxes for new Iow-income rental housing. B. Applicant has submitted an application for property tax exemption for property Iocated at 2640-2694~ 200~ 220 Ed~ewood Drive~ Eugene, Ore~on 97404 (Subject Property), to which this Agreement is attached as Schedule 3, as required by Section 5.1 of the above-referenced Standards and Guidelines. Now, therefore, the parties agree as follows: 1. Report. Applicant agrees that on or before February 1 of the first tax year to which this exemption applies, and on or before February 1 of each year thereafter for the duration of the tax exemption pedod, it will provide to the City a report that certifies under oath: a. The total number of rental units on the Subject Property which are occupied and unoccupied as of December 31 of the preceding calendar year; b. The income levels of the occupants of the rental units; c. That unoccupied units are being offered for rental solely as a residence for Iow-income persons; and d. That the required rental payment(s) reflect the full value of the property tax exemption granted to Applicant for the Subject Property. 2. Inspections. Applicant agrees that the City may, at its option, inspect the premises at regular intervals to verify the accuracy of the reports required herein and compliance with other provisions of this Agreement. The parties may agree in wdting that inspections occur on specific dates, and absent such an agreement, City may perform inspections upon five (5) days' pdor written notice to Applicant. 3. Documentation. Applicant agrees to provide City upon ten (10) days' prior written request, documentation of all facts certified in the report required in Section 1 of this Agreement. 4. Notice~. Any notice required under this Agreement shall be in writing, and directed to City in care of the Planning & Development Department, 99 West 10th, Eugene OR 97401, and to the Applicant at the address indicated above. 5. Effective Date. This Agreement shall become effective upon approval of the Applicant's application for ad valorem property tax exemption to which this is appended, and shall remain in effect throughout the duration of the tax exemption period. 6. Termination of Aqreement. This Agreement shall terminate, with no further action required by either party upon: 6.1 The expiration of the tax exemption period; 6.2 Termination of the tax exemption by the City Council for Applicant's failure to: 6.2.1 Complete construction within the time required, including any extensions granted; 6.2.2 Comply with the provisions of ORS 307.515 to 307.523, the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, or the Standards and Guidelines adopted by Resolution No. 4327, or this Agreement; or 6.2.3 Comply with any conditions imposed in the Resolution approving the tax exemption application. 6.3 A determination by the County Assessor that a change of use to other than that allowed has occurred, resulting in an immediate termination of the tax exemption by the County Assessor. DATED this ,,~ / day of July ,20 04 Annle Orchard Vil. lage, LP / Metropolitan Affordable Housing Corp., GP P~i~t Name of Applicant S'u thorized' Representative of Applicant Print Name & Title of Authorize"d Representative 1430 Pearl Street / PO Box 5848 / Eugene, Oregon 97405 Address of Authorized Representative Accepted this day of ,20~ CiTY OF EUGENE Tom G. Coyle Executive Director Planning & Development Department Property Tax Exemption for Low-income Rental Housing ~ SCHEDULE 4 - CONSENT TO INSPECTION OF PREMISES The undersigned, as Applicant for an exemption from ad valorem taxes for the property located at 2640-2694, 200, 220 Edgewood Drive, Eugene, Oregon 97404 hereby consents that upon approval of the application to which this is appended and occupancy of the Iow-income rental unit(s), authorized representatives of the City of Eugene may, for the duration of the tax exemption pedod, inspect the above premises at reasonable times, and without prior notice, to ensure that the premises are maintained in decent, safe, and sanitary condition for the occupants thereof. Applicant acknowledges that this consent and the obligation to maintain the premises in a decent, safe, and sanitary condition are material to the City's consideration of Applicant's request for exemption from ad valorem taxes for the described property. DATED this '~ ~ day of July ,20 04 Apple Orchard Village, LP Metropolitan Affordable Housing Corp., GP Name of Applica Signature of Authorized Representative of Applicant Name & Title of Authorized Representative 1430 Pearl Street / PO Box 5840 Eugene, Oregon 97405 Address of Authorized Representative Property Tax Exemption for Low-income Rental Housing ~ SCHEDULE 5 CERTIFICATION OF INCOME LEVELS OF LOW-INCOME OCCUPANTS 60% of Area Median Income for Eugene, Oregon These figures are updated annually by HUD 2004 Area Median Income 'HOusehold Size 60% of Median 1 $21,360 2 $24,420 3 $27,480 4 $30,540 5 $33,000 6 $35,400 7 $37,860 8 $42,320 I hereby certify that the rental units for which this exemption is sought are not occupied by, nor will they be offered for rental units to persons whose incomes exceed the levels reflected above for Iow-income persons. DATED this ~ day of ~Tul¥ ,20 O4 Apple Orchard Village, LP Metropolitan Affordable Housing Corp,, GP Print Name of Applicant Signature of Applicant Schedule 6 Property taxes are an operational expense to any income property. Excluding property taxes, the operational expenses for an affordable housing property are actually somewhat higher than for a market-rate property. In effect, it is the Property Tax Exemption that allows affordable housing to offer rents that are significantly below market rates. (See the attached Operating Budget from the State of Oregon Apple Orchard CFC Application.) The Operating Budget shows a Net Annual Income of $179,539 for year one. Annual expense and debt service payments total $176,924. This leaves a Net Cash Flow per year of $2,615. This assumes 31%, 41% and 51% rents ranging from $226 per month to $505 per month. If property tax payments of $73,635 were added to the Annual Operating Expense Budget, without increasing rents, the result would be a negative Annual Cash Flow of $71,020. In order to have a financially viable project, rents would have to be raised, on average, by $153 per unit per month to cover the property tax obligation. This would effectively make Apple Orchard a market-rate apartment project. The 20 year Net Present Value calculation of the property tax exemption (provided in the application) shows the total value of the exemption at $1,125,285. If one were to perform a like calculation on the value of the additional rents that would be charged over 20 years without the exemption, the benefit of the exemption to Apple Orchard residents is clearly in excess of property tax exemption offered. VVhen likely market factors over the next 20 years are added into the equation, it is likely that Apple Orchard rents would have to rise to a level higher than market-rate. The required rents do reflect the full value of the Property Tax Exemption. Housing Development Project: Apple Orchard I Project Data $18.47 Tax rate ($ per thousand) Property value increase @ 3%! Current property value $ 3,986,748 T-note rate 5.47%] Year Property, Value Tax Assessment Year 1 $ 3,986,748 $ 73,635 Year 2 $ 4,106,350 $ 75,844 Year 3 $ 4,229,541 $ 78,120 Year 4 $ 4,356,427 $ 80,463 Year 5 $ 4,487,120 $ 82,877 Year 6 $ 4,621,734 $ 85 363 Year 7 $ 4,760,386 $ 87 924 Year 8 $ 4,903,197 $ 90 562 Year 9 $ 5,050,293 $ 93 279 Year 10 $ 5,201,802 $ 96 077 Year 11 $ 5,357,856 $ 98 960 Year 12 $ 5,518,592 $ 101 928 Year 13 $ 5,684,149 $ 104 986 Year 14 $ 5,854,674 $ 108 136 Year 15 $ 6,030,314 $ 111 380 Year 16 $ 6,211,223 $ 114,721 Year 17 $ 6,397,560 $ 118,163 Year 18 $ 6,589,487 $ 121,708 Year 19 $ 6,787,172 $ 125,359 Year 20 $ 6,990,787 $ 129,120 TOTAL = $ 1,978,606 Net Present Value = $1,125,285 HOUSING OPERATING BUDGET - INCOME I I I r Project Name: Apple Orchard Date: 08/08/03 County: Lane ANNUAL Residential Income: Annual Inflation Rate Factor: 3;00% Gross Tenant Net Median Monthly Paid Monthly Unit Unit Ct of Square Income Rent Per Utility Rent Per Number Size Type Baths Feet % Unit Allow Unit of Units 1 2 3 i 4 5 10 15 20 30 0 Bdr 1.0 5,50 31 268~ 42 = 226 x12 ~4 = 10,848 11,173 11,509 11,854. 12,210 14,154 16,409 19,022 25,564 0 Bdr : 1 0 550 41 : 357 - 42 = 315 x12 : 4 = 15,120 15,574 16,041 I 16,522 17,018 19,728 22,870 26,513 35,631 1 Bdt 1.0 740 41 : 38t - 55 = 326 x12 4 = 15,648 16,117 16,601 17,099 17,612 20,417 23,669 27,439 36,876 :t Bdr 1~0 740 51 47~~- 55 = 422 x12 : 3 = 15,192 15,648 16,117 16,601 17,099 19,822 22,979 26,639 35,801 0. 0 Mgr. Bdr 1.0 740: 0 0~- : 0 = 0 x12 1 = 0 0 0 0 0 0 2 Bdr 1.O 840 41 ;: 458~ 68 = 390 ×12 ~2 = 56,160 57,845 59,580 61,368 63,209 73,276 84,947 98,477 132,345 : 2 Bdr 1.O 840 51 :573 - :68 = 505 x12 12 = 72,720 74,902 77,149I 79,463 81,847 94,883 109,996 127,515 i 171,369 0 0 Bdr : 0 ~ ~ : : 0 x12 : = 0 0 0 0 0 0 0 Bdr 0 ~ = 0 x12 = 0 0 0 0 0 i~ 0 0 0 0 ~ 0 .. ~ = 0 X12 = 0 0 0 0 0 0 0 0 0 Bdr 0 : ~ = 0 x12 = 0 0 0 0 0 0 0 0 0 Bdr ~ 0: : ~- : : = 0 x12 = 0 0 0 0 0 0 0 01 0 ~ ~ ~ o ×12 = o o o o o o o o[ o ~ _=_ o x12 = o o o o o o o o o SUB-TOTALS 40 = 185,688 191,259 196,996 202,9061 208,993 242,281 280,870 325,605, Service Revenue: Total Annual Income Medicaid-Resident Services (Averaged) 0 0 0 0 0 0 0 0 I 0 Private-Resident Services (Averaged) 0 0 0 0 0 0 0 0 I 0 Other: 0 0 0 0 0 0 0 0 i 0 Other: : 0 0 0, 0 0 0 0 0 i 0 Other Revenue: Laundry ~1,600 1,545 1,591 1,639 1,688 1,957 2,269 2,630 3,535 Garage/Parking 0 0 0 0 0 0 0 I 0 Deposits on Turnover ' ~11800 1,854 1,910 1,967 2,026 2,349 2,723 3,156 4,242 Commercial Space: i : 0 0 0 0 0 0 0 0 Cable TV 0 0 0 ~l 0 0 0 0 0 Other: I 0 0 0 0 0 0 0 I 0 : 0 0 0 0 0 0 0 0 Other: SUB-TOTAL OTHER REVENUE 3,300 3,399 3,501 3,606 I 3,714 4,306 4,992 5,787 7,777 ~ I Gross Income: 188,988 194,658 200,497 206,512 212,708 246,586 285,861 331,392 445,363 Less Vacancy Rate 5% (9,449) (9,733) (10,025)i (10,326) (10,635) (12,329) (14,293) (16,570) (22,268_) Effectiv Gross lncome: 179,539 184,925 190,473, t96,187 202,072 234,257 271,568 3t4,822 423,094 Note: Projects that provide care services (e.g., Assisted Living Facilities) need to delineate the service levels and anticipated revenue as well as the basic monthly rents on a separate parle I I I I 2Ot)3 CFC AppLication - Tab ¢, Pro Forma Pages Apple Orchard HOUSING OPERATING BUDGET - EXPENSES ~roje~t Nam~ Appl~ 0r~t~rcl Date: 08t08/03 :: Annual Inflation Rai~ F~ci0l:i :4;00°/. Annual per Annual Operating Expenses Unit 1 2 3 4 5 10 15 20 30 insurance 265 '1'ii(~-4 11,465 - 1~,924 -1-~401 '1~(~§~ ' ~§,~6 - 22,33-3 .... 33.058 Utiliti_es:(common_ a?e~s) [ L Gas/Oil 0 a 0 c 0 0 0 0 0 .... - ~lec_tric_._ - __ -~ .1~ ~$~ ' 51~.-i - --5;9_70_ - -~,~0~ _ _. _61_-4_~8 7,857 -~ ~59 .___~"J~- 6~0 __ _Water&Sewer ....... 7987 _ 8_,3_0_7 8,_639_ 8,~985 10,9_31 13,299_ 16,181 23,951 Garbage Removal 1746!960 7,238 __ 7_,_528 7, S_2_9 8,142 _9-,~06 12,05_2 _ 14,664 21,706 ...... Cable TV _ _ I 0 0 0 O 0 0 0 0 0 Repairs ...... ~240 6,490 6,749 7,019 8,540 10,390 12,641 18,712 ~_en_e_ral Maintenance __ 1~8_0_ ~;200 7,48~8_ ..... 7~,788 8_,_0_99 8,423 10,_2.48- __ 12,46~8 .._ 1~5,169 _2_2,454 Landscape Maintenance 198 ~929 8,237 8,566 8,909 9,265 11,273 13,715 16,686 24,70¢ Replacement Reserve 250 ~0~000 10,400 10 816 11,249 11 699 14 233 17,317 21,068 31,187 Proper{y-"Management: .......... ~ I O~-site 390 ;;;;; ;; ;;15;600 16 224 16 873 17 548 18,250 22 204 27,014i 32,867 48,651 ..... ~ontracte~(8~fLSite) .... ~;3~-~ - 14,926 ~1~'~- q~i4.4 ~t~ 23,897 -2~9,075 Resident Services 162 6,739 7,009 7,289 7,581 9,223 11,221 13,652 20,209 Case Management 0 0 0 0 0 0 0 0 0 Legal ~ 416 433 450 468 569 693 843 1,247 Account~n~-~j - ...... ~.~-6~) 4,32~ --4~8'.~ '- - 4,879 -- 5,(~' -- - 6,927 -8,427 Compliance Monitoing Fees 25 ;~000; 1 040 1,082 1,125 1,170 1,423 1,732 2,107 3,119 Office ~ Administr~{i~)~'-~ 40 ; ;; ;~;;6eg; 1,664 1,731 1,800 1,872 2,277 2,771 3,371 4,990 Advertising/Marketing & Promotion 30 1,248 1,298 1,350 1,404 1,708 2,078 2,528 3,742 .init Turnover 74 3,078 3,202 3,330 3,463 4,213 5,126 6,236 9,231 Taxes(non-real estate) 0 0 0 0 0 0 0 0 0 Real Estate Taxes 0 0 0 0 0 0 0 0 0 Payroll Taxes 61 2,538 2,639 2,745 2,854 3,473 4,225 5,141 7,610 5ther:---~ ............ 1,24§ --q~2-~§ ....... 1,350-- 1,404 ~(~' ~078 2,528 3,742 Other - ' ' : j U :: 0 0 0 0 0 0 0 0 Total Annual Operating Expe__n_ses!. 2,814 112,560 !~_7,06~2 _._1_21_,745_ 126,615 13_1,_679 1_60_,2~0~8 194,918 237z!4_7 351,035 Less Debt Service: Permanent loan ;Rate ITerm (Years) Loan Amount ~23i~62 '--- 845 33,785 33,785 -- -3-~B~ 33,785 33,785 33,78~ - 3~,7~8-5 33,78~ .... -3-.~,~7~ DAHTC Permanent loan ;Rate JTerm (Years) Loan Amount 0.00%j 30 0 0 0 0 0 0 0 0 0 0 Portion of perm loan wlo OAHTC (if applicable) :: O 0 0 0 0 0 0 0 0 0 0 Deferred Developer Fee Rate [Term (Years) I Loan Amount ; 0 0 0 O 0 0 0 0 0 0 Amortized Debt (HOME Loan,, Partnership Loans,etc.) Rate I Term (Years) I Loan Amount 4~5% 35 ~0~000 ---~ 587 23,465 23,465 23,465 23,465 23,465 ~. 23,465 23,465 23,465_ _ _ -_~-3 ,-4(~'5 ~.0~¢/~ ~ ~ 178 7,114 7,114 7,114 7,114 7,114 7,114 7,114 7,114 7,114 : I WITHOUT OAHTC Effective Gross Income: 4,488 179,539 184,925 190,473 196,187 202,072 234,257 271,568 314,822 423,094 Total Annual Operating Expens~e_s_( ..... ~2,_814 112,560 117,062 121,745 126,615 131,679 160,208 194,918 237,147 351,035 Net Operating Income: ____1,_674 66,979 67,862 68.728 69,572 70,393 74,049 76,651 77,675 72,059 Primary Debt Service 845 33,78_5_ 33,785 33,785 33,785 33,785 33,78~ 33,785 33,785 33,785 Total Debt Service 1,609 64,364 64,364 64,364 64,364 64,364 64,364 64,364 64,364 64,364 Cash Flow PerYear 65 ___2,6~1__5_ 3,498 4,364 5,208 6,029 9,685 ___12,287 13,311-- ___ 7,~6_9_5- Primary Debt Coveraqe~Ratio 1.98 1.98 2.01 2.03 2.06 2.08 2.19 2.27 2.30 2.13 Total Debt C~ overage Rati 1 .~04 1.04 1.05 1.07 1.08 1.09 1.15 1.19 ._ 1.21 1.12 2003 CFC Application - Tab 6: Pro Forma Pages Apple Orchard 5 August 8, 2003 Schedule 7 As documentation that Apple Orchard will be offered to or occupied solely by Iow- income persons, the Land Grant Agreement between the City of Eugene and Metropolitan Affordable Housing Corp. is attached. There are many additional documents with the State of Oregon, the Federal Government and our Tax Credit Partner that also document the absolute commitment for the project to be used solely for occupancy by Iow income persons. Other documentation will be supplied upon request. METRO APPLE ORCHARD APARTMENTS LAND GRANT AGREEMENT BETWEEN: The City of Eugene, a unit of local government of the state of Oregon (City) AND: Metropolitan Affordable Housing Corporation, Inc. a nonprofit corporation in the State of Oregon (Metro) AND: Neighborhood Economic Development Corporation a nonprofit corporation in the State of Oregon (NEDCO) CONTRACT NO.: 2004-02097 RECITALS A. In response to a Request for Proposals for Low-Income Rental Housing Projects (RFP), Metro submitted a proposal to the City for acquisition and construction of the Apple Orchard 40-unit rental housing complex for Iow- and very-low income families and single individuals (Project). The Metro proposal included a companion proposal from NEDCO. The NEDCO proposal request involved partitioning off two of the existing houses on the Apple Orchard property from the main development site, rehabilitating those houses and offering them as lease-to-own homeownership single family units for Iow-income families. City contract #2004-02072 between the City, Metro and NEDCO defines the participation and responsibilities of the parties in the development project. B. Metro held the option with the seller and purchased the Apple Orchard property (Property), 2.51 acres of primarily vacant property, located along Lone Oak Way and Edgewood Drive in Santa Clara, more particularly described in Exhibit B for $250,000. City provided $235,000 in federal Community Development Block Grant (CDBG) funds toward the $250,000 purchase price of the Property. NEDCO provided the remaining $15,000. The site included four existing houses, 175, 185, 200, and 220 Edgewood Drive, Eugene, Oregon. Following closing, Metro subsequently transferred ownership of the Property to City. C. City is the current owner of the Apple Orchard Property. The demolition of two existing housing units,175 and 185 Edgewood Drive, has been completed. The two remaining houses 200 and 220 Edgewood Drive are vacant and former tenants have received appropriate relocation benefits. City was to transfer ownership of the Metro portion of this housing development site when Metro was ready to start construction and the partition process was complete. The NEDCO lots were to be transferred following completion of the partition process. D. Due to an early award of State tax credit funding for their Apple Orchard Apartments housing development project, Metro is required to start construction immediately on the development of the affordable housing project at the Apple Orchard site to be in compliance with tax credit regulations. Metro can begin construction on the site following transfer of ownership of the Property from City back to Metro. City desires that the Property be used for the Project and Metro Apple Orchard Apartments Land Grant Agreement - 1 is willing to grant the Property to Metro on the condition that the Property be so utilized as more specifically set forth in this agreement. E. The partition process to separate the main Apple Orchard development area from the two single family lots, 200 and 220 Edgewood Drive, on the development site cannot be completed until access to those lots (construction of adjacent roads), is available. NEDCO's future redevelopment of these housing units is dependent on the transfer of ownership of the two single family lots to NEDCO. F. It is contemplated that Metro will transfer the Property to an Oregon limited partnership created for the Apple Orchard development, in which Metro will be the general partner: The limited partnership will be the entity that will actually construct, operate and maintain the Project and this agreement contemplates a conveyance of the Property to the limited partnership for that purpose. AGREEMENT In consideration of the terms and conditions hereinafter stated City, Metro and NEDCO do mutually agree on the terms and conditions set forth herein and in the following exhibits: Exhibit - A Standard Contract Provisions Exhibit - B Property Description Exhibit - C Community Development Block Grant Regulations and Requirements Exhibit - D Memorandum of Agreement 1. Grant of Property. City agrees to grant the Property purchased with CDBG funds to Metro on the terms and conditions set forth in this agreement. 2. Date of Transfer. Transfer of the title of the Property shall be accomplished by statutory special warranty deed, free of encumbrances suffered or created by City except matters of record. The Property shall be transferred no later than May 31, 2004. Metro shall transfer to NEDCO title to the two single family lots, 200 and 220 Edgewood Drive, as soon as is practicable following the completion of the partition process to separate the main Apple Orchard development area from the two single family lots. 3. Consideration. Metro shall pay City a consideration for this sale of one dollar ($1.00) for Property. 4. Metro Covenants. Metro agrees that the Property will be used for construction and maintenance of the Metro Project in accordance with the following: 4.1 As developer of their portion of the Property, Metro agrees to begin work immediately following ownership transfer. Metro agrees to furnish all labor and materials to construct forty (40) new rental housing units in the Apple Orchard Iow-income rental housing complex. Metro shall develop their portion of the Property into 24 two-bedroom units, eight one-bedroom units, and eight studios. Low-income units will be available for occupancy to households qualified as 30-50% of area median income. Initial rents Metro Apple Orchard Apartments Land Grant Agreement - 2 including utilities will be consistent with current Low HOME Rent Limits. The units will remain affordable for twenty (20) years from the completion of construction. One of the 40 units will be reserved for an on-site manager. The manager unit will be exempt from the affordability requirements. 4.2 Construction of the forty (40) new units of housing, shall be completed within twenty four (24) months of the execution of this agreement. Construction completion date may be extended by a period equal to any delay in construction reasonably beyond the control of Metro or Metro's assignee. In addition, City may, at its sole option, grant an extension of the date for completion and City agrees to grant a reasonable extension upon demonstra- tion to City's satisfaction (a) of the need for an extension and (b) that Metro or its assignee has been and will continue to be diligent in its efforts to complete the Project. 4.3 For a period of twenty (20) years from completion of construction of the Metro Project, at least 51 percent of all households renting units in the Project will be very Iow or lower income families, as determined in accordance with CDBG regulations described on attached Exhibit C. Compliance with this requirement shall be determined on an annual certification basis, i.e. during each year following completion of the Project, at least 51 percent or all households renting units must meet the very Iow and lower income family guidelines. 4.4 As used herein, the term completion means the date when construction, has been completed in accordance with the construction contract for the work and the plans and specifications as evidenced by a certificate prepared and executed by the Metro Project architect indicating that construction of the Project has been completed in accordance with the construction plans and specifications, except for punch list items which are not material and do not affect the rental of space in the Project on a full rent paying basis. 5. N£DCO Covenants. NEDCO agrees that their two lots will be used as Iow-income housing in accordance with the,following: 5.1 NEDCO agrees to cooperate and provide assistance to Metro in all aspects required by Metro in the partition process of the two single family unit lots for the existing units, 200 Edgewood Drive and 220 Edgewood Drive. 5.2 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property, including the infrastructure required to complete the partition process, and Metro is unable to transfer ownership of the two single family lots to NEDCO, then the ownership of the Property shall revert back to City. City shall repay NEDCO fifteen thousand dollars ($15,000), NEDCO's initial investment in the purchase of the property. City shall have no further obligation to NEDCO regarding their participation in the Apple Orchard development. Repayment shall be made within 45 days following the determination of Metro's inability to complete the partition process. 5.3 Following transfer of ownership of the two single family lots, 200 and 220 Edgewood Drive, NEDCO will complete the rehabilitation of the two existing houses on the Apple Orchard development site. Rehabilitation of both units shall be completed within eighteen (18) months of the transfer of ownership. After rehabilitation, units will either be sold Metro Apple Orchard Apartments Land Grant Agreement - 3 outright to qualified Iow income families or leased though NEDCO's lease-to-own homeownership program. Units will be kept in NEDCO's lease-to-own housing inventory and leased to income eligible tenants until the unit is sold to a qualified lease-to-own tenant. Tenant and homebuyer eligibility is based on the current CDBG household income levels. 6. Metro Reversion of Ownership and Obligation to Pay Upon Breach of Covenant, In the event Metro fails to complete the Project within the time specified in Paragraph 4.2, or in the event Metro fails to comply with the provisions of Paragraph 4.3, Metro shall either be required to return the property to City or required to pay to City an amount equal to the fair market value (FMV) of the Property, determined and adjusted as follows: 6.1 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property and Metro has not transferred ownership of the two single family lots to NEDCO, and City and Metro determine that reasonable extension(s) for commencement will not remedy the situation, then the ownership of the Property shall revert back to City. Metro shall transfer the title of the Property by statutory special warranty deed, free of encumbrances suffered or created by Metro. City shall repay to Metro one dollar ($1.00). The Property shall be transferred within 45 days of the determination of Metro's inability to proceed. 6.2 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property and Metro has transferred ownership of the two single family lots to NEDCO, and City and Metro determine that reasonable extension(s) for commencement will not remedy the situation, then the ownership of the Property, less the two partitioned NEDCO single family lots, shall revert back to City. Metro shall transfer the title of the Property by statutory special warranty deed, free of encumbrances suffered or created by Metro. City shall repay to Metro one dollar ($1.00). The Property shall be transferred within 45 days of the determination of Metro's inability to, proceed. 6.3 The FMV shall be determined as of the date of the notice under Paragraph 6.5 and shall be the FMV of the land only, without regard to any improvements thereon, based on information from an appraisal conducted as of the date of notice. The appraisal shall be performed by a certified appraiser selected by City and Metro. 6.4 If the obligation to purchase arises because of a failure to comply with Paragraph 4.3, the purchase price determined under Paragraph 6.3 shall be adjusted based on the number of years that the Property qualified, pursuant to Paragraph 4.3, prior to the year in which the Property ceased to qualify. For example, if under Paragraph 4.3 the Property qualified for five consecutive years and ceased to qualify during the sixth year, the purchase price determined under Paragraph 6.3 would be reduced by 25 percent. 6.5 Any Property transfer or applicable payment shall be completed by Metro within 45 days after notice from City of a breach of either of the covenants in Paragraph 4. 7. NEDCO Reversion of Ownership and Obligation to Pay Upon Breach of Covenant. In the event that ownership of the two single family lots is transferred to NEDCO and NEDCO fails to comply with the provisions of Paragraph 5.3, NEDCO shall either be required to return Metro Apple Orchard Apartments Land Grant Agreement - 4 the property to City or required to pay to City an amount equal to the FMV of the Property, determined and adjusted as follows: 7.1 In the event that NEDCO is unable to proceed with any aspect of the rehabilitation in a timely manner and no improvements are made to either one or both of the two existing single family units, and City and NEDCO determine that reasonable extension(s) for commencement of the rehabilitation will not remedy the situation, then the ownership of the lot(s) shall revert back to City. NEDCO shall transfer the title to the individual lot(s) by statutory special warranty deed, free of encumbrances suffered or created by NEDCO except matters of record. 7.2 Based on the initial City investment of twenty five thousand dollars ($25,000) in federal CDBG grant toward the purchase of the Property, each single family lot received a CDBG contribution of twelve thousand five hundred dollars ($12,500). Based on NEDCO's initial contribution of fifteen thousand dollars ($15,000), each single family lot received a NEDCO contribution of seven thousand five hundred dollars ($7,500). Should either of the single family lots revert back to City, pursuant to Paragraph 7.1, City shall repay to NEDCO seven thousand five hundred dollars ($7,500) per lot. The individual lot(s) shall be transferred within 45 days of the determination of NEDCO's inability to complete the rehabilitation of the unit(s). 7.3 The fair market value (FMV) shall be determined as of the date of the notice under Paragraph 7.5 and shall be the FMV of the land and any improvements thereon, based on information from an appraisal conducted as of the date of notice. The appraisal shall be performed by a certified appraiser selected by City and NEDCO. 7.4 If the obligation to purchase either of the lots arises because of NEDCO's failure to comply with Paragraph 5.3, the purchase price determined under Paragraph 7.3 for each lot shall be the current FMV, as determined by a qualified appraiser selected by NEDCO and City, reduced by NEDCO's financial contributions, including the seven thousand five hundred dollars ($7,500) per lot attributable to NEDCO's contribution toward the original acquisition of the property and the amount of NEDCO funds invested in rehabilitation and any other improvements to the subject property as of the date of the notice. 7.5 Any Property transfer or applicable payment shall be completed by Metro within 45 days after notice from City of a breach of either of the covenants in Paragraph 4. 8. Recording of Memorandum of Agreement/Subordination. The parties agree that a memorandum of this agreement shall be recorded in the Deed of Records of Lane County, Oregon describing the covenants set forth in Paragraphs 4 and 5 and providing that such obligations will run with the land and be binding upon Metro and NEDCO's successors and assigns, with the following exceptions: 8.1 The rights of City under the recorded document and this agreement shall be subordinate to the lien of any trust deed or mortgage on the Property which secures any construction or permanent financing of improvements on the Property. Metro Apple Orchard Apartments Land Grant Agreement - 5 8.2 City agrees to execute a subordination agreement satisfactory to any lender described in Paragraph 8.1 confirming the subordinate nature of City's rights under this agreement and the recorded document. 9. Contract Administration. Each party designates the following as its representative for purposes of administering this agreement: Metro: NEDCO: City: Richard Larson Sandy Halonen Linda Dawson President Executive Director Planning and Development P.O. Box 5848 775 Monroe 99 W. 10th Avenue Eugene, Oregon 97405 Eugene, Oregon 97402 Eugene, Oregon 97401 Either party may change its designated representative by giving written notice to the other as provided in paragraph 13. 10. Record/Inspection. Metro and NEDCO shall maintain records of its CDBG grant require- ments under this contract for a period of not less than five (5) full fiscal years following completion of the compliance period under Paragraph 4.3 and 5.3, as follows: 10.1Metro and NEDCO shall maintain appropriate records reasonably required by City for determination of compliance with Metro and NEDCO's covenants and obligations under this agreement, including records of all tenants, regardless of length of occupancy, residing in affordable units in the Project and single family units. Records and documentation maintained by Metro and NEDCO shall be sufficient to verify eligibility as very Iow or lower income families according to CDBG income guidelines. Information shall include income level, race and ethnicity data, female head of household, and disability status and such other information as City may reasonably require. 10.2City shall have the right, upon reasonable advance notice, to inspect, audit and make copies of any records that relate to this agreement that are reasonably necessary to determine compliance with the requirements of this agreement. 11. Indemnification. To the extent legally possible, Metro, NEDCO and City shall indemnify and hold the other, its officers, agents, and employees, harmless from and against any and all claims, actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in any way related to any act or failure to act by each other and each other's employees, agents, officers, and contractors in connection with this agreement. 12. Compliance With Laws. Metro and NEDCO shall comply with all applicable federal, state, and local laws, rules, ordinances, and regulations, in connection with its use of the Property and shall defend, indemnify and hold City harmless from any failure of compliance. 13. Notices. Any notices permitted or required by this contract shall be deemed given when personally delivered or upon deposit in the United States mail, postage fully prepaid, certified, return receipt requested, addressed to the representative designated in paragraph 9. Either party may change its address by notice given to the other in accordance with this paragraph. Metro Apple Orchard Apartments Land Grant Agreement - 6 12. Arbitration. Any controversy regarding the terms and conditions of this agreement shall be submitted to arbitration. Any party may request arbitration by written notice to the other. If the parties cannot agree on a single arbitrator within 15 days from the giving of notice, each party shall within five days select a person to represent that party and the two arbitrators shall immediately select a third impartial person to complete a three-member arbitration panel. If the two arbitrators cannot agree within 15 days on the third arbitrator, then either party may petition the Presiding Judge of the Lane County Circuit Court to select the third arbitrator. The panel shall conduct the arbitration in accordance with the provisions of ORS Chapter 33, or the corresponding provisions of any such future law. The arbitrator(s) shall assess all or part of the cost of the arbitration, including attorney fees, to any or all parties. 13. Assignment and Transfer. 13.1 Metro shall not assign or transfer the Property and its obligations under this agreement to any person or entity except the Oregon limited partnership created for the Apple Orchard development, in which Metro will be the general partner. A transfer by Metro or any subsequent transfer shall not, however, relieve Metro of its obligations under this agreement. Metro shall remain primarily liable to City for payment of the amount due under Paragraph 6 upon a failure of either covenants under that paragraph, whether that failure is the fault of Metro or the fault of the transferee, assignee or other party, and whether Metro has any interest in the Property or the Project, as a general partner of the Apple Orchard Limited Partnership, or otherwise. 13.2 NEDCO shall not assign or transfer the single family lots and its obligations under this agreement to any person or entity except as a sale to a CDBG eligible home buyer through the NEDCO lease-to-own program. 14. Integration. This agreement integrates the elements of the original RFP, the Metro and NEDCO proposal, the separate City documents for construction of the 40 rental units and rehabilitation of the two units on the single family lots. Separate agreements detailing specific terms, conditions, and obligations are in place or shall be negotiated for the following: 14.1588,800 in waivers to Metro toward City of Eugene Systems Development Charges for the Apple Orchard Apartments. 14.2545,500 in waivers to Metro toward Eugene Water and Electric Board Systems Development Charges for the Apple Orchard Apartments. 14.3HOME Investment Partnerships Program grant to Metro for construction financing of the Apple Orchard Apartments. 14.4550,000 CDBG rehabilitation loan to NEDCO for the two single family units. 14.5Terms and conditions of City contract#2003-02072, Metro Apple Orchard Apartments Grant Agreement, dated January 17, 2003, remain in full force and effect, with the exception of the change in the ownership transfer relationship as noted in this agreement. Metro Apple Orchard Apartments Land Grant Agreement - 7 14.6Terms and conditions of City contract#2003~02112, Metro Apple Orchard Apartments HOME Grant Pre-Development, dated June 26, 2003 and amended July 17, 2003, remain in full force and effect. This contract shall supersede all prior communications, representations or agreements, either oral or written, between the parties. This agreement shall not be amended except in writing, signed by all parties. 15. Interpretation. This agreement shall be governed by and interpreted in accordance with the laws of the state of Oregon. 16. Effective Date. The effective date of this contract shall be the latest date of signature by the parties. Metro NEDCO (signature) - (BsiY~ n atu re ;~~'~/ Richard Larson Sandy Halonen President Executive Director Date'. ~'///0~' Date: (signatu}e) , , ~ ...... Dennis M. Taylor ~ ~ City Manager Date: ~ Metro Apple Orchard Apartments Land Gran[ Agreement - 8 Schedule 8 Apple Orchard Village, LP and Metropolitan Affordable Housing Corp. exist as legal entities for the sole purpose of providing housing and services to benefit Iow-income persons. The Apple Orchard Village Operating Agreement expressly forbids the use of funds for any other purpose. The undersigned, hereby, certifies that the applicant expends no more than 10% of its annual income from residential rentals for purposes other than the acquisition, maintenance, or repair of residential rental property for Iow-income persons. Dated this '~"~' day of July, 2004 Apple Orchard Village, LP Metropolitan Affordable Housing Corp., GP Signature of Autl~rizc:~l 'Representative of Applicant ~lame'& Title o~ Authorized R~'pre~entative 1430 Pearl Street / PO Box 5840, Eugene, Oregon 97404 ATTACHMENT I JUN 2 i 200 Public Private Partnerships, InOp3 June 18, 2004 Richie Weinman Neighborhood & Affordable Housing Manager City of Eugene 99 West 10th Avenue Eugene, OR 97401 Re: Willamette Gardens Apartments Property Tax Exemption Application Dear Mr. Weinman, On behalf of P3 I am pleased to submit the attached application of Property Tax Exemption Program for Low-Income Rental Housing for the proposed Willamette Gardens Apartments. The proposed Apartments' site is located north of Marche Chase development, which is filled with charming houses and affluent residents. Willamette Gardens will also be located within walking distance of Alton Baker Park, a 400-acre park with bike trails, wetlands, rock garden, community garden, Cuthbert Amphitheater, science museum, planetarium, and more. The residents of Willamette Gardens will enjoy easy access to downtown with excellent bus service, bike trails, and street system. In this area, the bus service to downtown is frequent and fast. Schools that will serve the property have earned strong to exceptional ratings on the state's 2003 report card. This makes the neighborhood even more desirable to concerned parents and will promote education to low income families and help raise the education achievement of the resident's children. Willamette Gardens will consist of 240 units housed in 10 buildings and a 2,500 square feet Community Room for the management and residents use. The proposed apartments will have a diverse mix of unit sizes ranging between one and three bedrooms targeting low income families that earn 60% or below of the Area Median Income (AMI.) In 2003 HUD removed Lane County from the Difficult to Develop Area (DDA) list and as a result, the City of Eugene lost a valuable source of funds that was targeted to build low income rental housing. Fortunately Willamette Gardens' site is located within one of the few Qualified Census Tracts (QCT) in Lane County. This QCT designation will bring an additional 30% of tax credit funds to help build such project which is not available to other apartment sites in the City. P3 is striving to build this project with the best design and the best materials available. In addition to that P3 intends to keep this project affordable for a long time, 4800 SW MACADAM AVENUE, SUITE 309 · PORTLAND, ORECON 97239-3927 · TEL: 503.219.9500 FAX: 503.219.9700 45 - 60 years. In order to achieve these goals and keep the rents affordable, P3 hereby kindly request the City of Eugene to approve a property tax exemption for Willamette Gardens. We, here at P3, and Willamette Gardens' team are looking forward to working with you in a partnership that will create a safe, sanitary, and pleasant community where low income families can live and flourish. Should you have any questions please call me at (503) 219-9512. Best regards, Mazen Abualhaija Vice President Property Tax Exemption Program for Low-income Rental Housing Application Revised 2004 For more information, please contact Richie Weinman at 541.682.5533 City of Eugene Eugene Planning & Development Department 99 West 10th, Eugene OR 97401 Property Tax Exemption for Low-income Rental Housing GENERAL INFORMATION The City of Eugene's Low-income Rental Housing Property Tax Exemption Program (LITEs) is intended to provide incentives for the construction of new rental housing for Iow-income persons within the city by exempting the property from ad valorem taxes for a period not to exceed twenty (20) years. WHO MAY APPLY? Any person or entity owning or purchasing property upon which Iow-income rental housing units were constructed after February 12, 1990, or will be constructed within two years after approval of an application (under current provisions, construction must be completed by July 1,2010). Non-profit public benefit corporation or religious corporations (see Exhibit A - Definitions) must meet specific criteria as requested in the application. WHEN TO APPLY? An application must be filed on or before December I of the calendar year immediately preceding the tax year for which an exemption is requested. If the property is acquired after November 1, an application may be submitted within 30 days after the date of acquisition, but no later than January 1 of the next calendar year. Your application packet must consist of the following documents: · Application form (use City form) · Exhibit A - Definitions (use City form) · Schedule 1 - Documentation of Public Benefit Corporation or Religious Corporation Status · Schedule 2 - Proof of Ownership of Interest in the Property · Schedule 3 - Rent Regulatory Agreement (use City form) · Schedule 4 - Consent to Inspection of Premises (use City form) · Schedule 5 - Certification of Income Levels of Low-income Occupants (use City form) · Schedule 6 - Documentation that the Required Rent Reflects the Full Value of the Property Tax Exemption · Schedule 7 - Documentation that the Property Will be Offered to or Occupied Solely by Low-income Persons · Schedule 8 - Documentation that the Applicant Expends no more than 10% of its Annual Income from Residential Rentals for Purposes other than the Acquisition, Maintenance or Re of Residential Rental Property for Low-income Persons Property Tax Exemption for Low-income Rental Housing APPLICATION FORM Property Tax Exemption for Low-income Rental Housing Sections 2.937 to 2.940 of the Eugene Code, 1971 the applicant if this application is not approved. You may be subjectto other reasonable costs, including INSTRUCTIONS All applicants must complete Sections A and B and must also attach the appropriate Schedules. The application must be signed before a Notary Public. If you do not supply all the required information and schedules, and submit the required fees, this application shall be returned to you and deemed not to have been filed. SECTION A- APPLICANT INFORMATION I 1. Name: Public Private Partnerships, Inc. Address: 4800 SW Macadam, Ste. 309 Portland, OR 97239 Telephone: 503.219.9500 Email Add ress: mazena~publicprivate, org Contact Person: Mazen Abualhai/a 2. Is the Applicant: a. Yes No [] A public benefit corporation? b. Yes No [] A religious corporation? SECTION B - PROPERTY I 1. / Name of Property Owner: Simpson Housing Limited Partnership [ Property Address: Marche Chase Dr. & Kinsrow Eugene, OR 97401 Assessor's Number: 1662731 Attach as Schedule 2 Applicant's proof of ownership, or if not owner, proof of Applicant's interest under a purchase contract. 12. Portion of property for which exemption is sought: []All or The following described portion: See attached legal description I 3. Description of purpose of project: Provide affordable housing to families earning at or below 60% of Area Median Income. [] All of the property for which exemption is sought will be used for this purpose The following described portion of the property will be used for this purpose: Project Construction Dates: Commencement of Construction: 12/04 Anticipated Completion: 10/05 I 4. [] Yes No The Rent Regulation Agreement attached as Schedule 3 and Consent to Inspection of Premises attached as Schedule 4 have been executed and Applicant agrees to maintain the same in effect throughout the duration of the tax exemption period. Order No. 30-0021903 PageNo. 4 EXHIBIT "A" Commencing at a Lane County Brass Cap monument marking the Southeast comer of the Mahlon Harlow Donation Land Claim No. 57, in Section 33, Township 17 South, Range 3 West, Willamette Meridian; thence along the East line of Donation Land Claim No. 57, North 0° 04' 12" We. st, 2130.39 feet; thence leaving the East line of Donation Land Claim No. 57, South 87° 52' 00" West, 1560.65 feet to a 5/8 inch rebar; thence North 87' 51' 40" East, 457.36 feet to a 5/8 inch rebar to the true point of beginning; thence North 0~ 10' 05" East, 15.98 feet to a 5/8 inch rebar; thence North 0° 03' 34" West, 379.34 feet to a 5/8 inch rebar;.thence North 87° 52' 30" East, 689.51 feet to a 1/2 inch iron pipe; thence South 0° 06' 03" East, 379.45 feet to a 1/2 inch ironpipe; thence North 87° 53' 06" East, 389.66 feet to a point on the Westerly margin of Garden Way; thence along the Westerly margin of Garden Way, South 0° 04' 12" East, 15.74 feet; thence leaving the Westerly margin of Garden Way, South 87° 49' 11" West, 303.26 feet to a 5/8 inch rebar; thence South 0° 08' 36" East, 125.10 feet to a 5/8 inch rebar; thence North 87° 52' 00" East, 49.50 feet to a 5/8 inch rebar; thence South 0° 03' 30" East, 198.00 feet to a 5/8 inch rebar; thence South 34' 45' 26" East, 98.48 feet to a 5/8 inch rebar;, thence South 00° 03' 30" East, 374.88 feet to a 5/8 inch rebar on the Northerly margin of Garden Way; thence along the Northerly margin of Garden Way, South 87° 52' 00" West, 290.30 feet to a 5/8 inch rebar; thence Southerly along the Westerly margin of Garden Way, South 2' 07' 39" East, 145.78 feet to a 5/8 inch rebar; thence along the arc of a 40.00 foot radius curve right (chord bears South 42' 26' 31" West, 56.14 feet) an arc distance of 62.23 feet to a 5/8 inch rebar on the Northerly margin of Centennial Boulevard; thence along the Northerly margin of Centennial Boulevard, South 87' 00' 41" West, 481.14 feet to the intersection of said Northerly margin of Centennial Boulevard with the Easterly margin of Marche Chase Drive as dedicated to the City of Eugene on Reel No. 2031, , Reception No. 95-02759, Lane Comity Official Records; thence along said Easterly margin North 01 ° 41' 25" West, 117.92 feet; thence along the arc of a 161.81 foot radius curve to the right (chord bears North 28° 14' 53" East, 162.11 feet) an arc distance of 169:80 feet; thence along the arc of a 231.81 foot radius curve to the left (chord bears North 44 ' 15' 27" East, 112.57 feet) an arc distance of 113.71 feet; thence North 01 ' 41' 25" West, 638.66 feet; thence South 87° 53' 36" West, 211.71 feet to the true point of beginning, all in Lane County, Oregon. EXCEPT that portion conveyed to the City of Eugene by instrmnent recorded April 15, 1999, Document No. 99-033894, Lane County oregon Official Records. ALSO EXCEPT that portion conveyed to the City of Eugene by instrument recorded July 24, 2003, Document No. 2003-068338, Lane County Oregon Official Records. 5. [] Yes No Are you aware of any conflict with the City's Housing Dispersal Policy? If yes, please provide any explanation of mitigating circumstances that should be considered by the City. The site is located within a HUD designated QCT, which is based on area income levels. According to Eugene's 1996 Housing Dispersal Po/icy, the Chase Node area is located in a suitable block group for developing Iow income housing. The proposed unit mix consists of 60 one-bedroom, 84 two-bedroom, and 96 three-bedroom apartments for a total of 240 units. The site is zoned R4, which requires at least 20 units per acre; therefore, the development must contain a minimum of 196 units. Proposed zoning for the Chase Node would require 25 units per acre; if implemented, Eugene's planning department would require at /east 245 units on this 9.8 acre site. 240 units is the appropriate size for the acreage, high land cost, zoning, and Eugene's housing need. 6. Yes [] No Will the development cause displacement of Iow-income persons? If yes, please explain mitigating factors that should be considered by the City. The site of the proposed development is currently open land. 7. Yes [] No Will the development cause destruction of historic property? If yes, please provide information as to any permit therefore or exception granted by the City Council. The site has passed SHPO's and the city of Eugene's historic review. u 8. [] Yes No The portion of the property for which exemption is sought is or will be offered for rent. 9. [] Yes No The portion of the property for which exemption is sought is or will be occupied solely by Iow-income persons. If yes, please attach a Certification of Income Levels of Low-income Occupants as Schedule 5. 10. [] Yes No The required rent payment reflects, or will reflect the full value of the property tax exemption. Attach documentation as Schedule 6. 11. Describe how the tax exemption will benefit project occupants: The tax exemption is critical to the project's feasibility; combined with federally funded grants and a Iow-interest loan through OHCS, P3 will able to offer a high quality development with affordable rents to benefit Iow income families over a 60 year period. 12. [] Yes No The property is unoccupied, and the attached Schedule 7 documents that it will be offered for rental solely as a residence for Iow-income residents. [] Yes No The property is occupied, and the attached Schedule 7 documents that it is occupied solely as a residence for Iow-income residents. I 13. ! Yes [] No Attached as Schedule 8 is documentation that the Applicant expends no more than ten percent (10%) of its annual income from residential rentals for purposes other than the acquisition, maintenance, or repair of residential rental property for Iow-income persons. The foregoing application, together with the application fee set forth above, is hereby submitted requesting an exemption from ad valorem taxes for the property described herein for a period of twenty (20) years, commencing with the tax year 2005. If this application is submitted on behalf of a corporation, association, or partnership, the individual signing this application specifically represents that he/she is authorized to act on behalf of the corporation, association, or partnership. DATED this 11th day of June, 2004. Public Private Partnerships, Inc. Print Name of Applicant Signature of Applicant or-'A'~thorized Representative of Applicant Mazen Abualhaija Name and Title of Authorized Representative STATE OF OREGON ) )§ COUNTY OF MULTNOMAH ) On the 11th day of June, 2004, personally appeared before me the within named Mazen Abualhaija, and affirmed the foregoing to be his/her voluntary act and deed. OFFICIAL SEAL ' ~ (~ H. ASPINWALL , NOT~YPUSUC-OREGON Notary Exp~lrdti6n: 08/08/07- COMMISSION NO. 370~73 MY COMMISSION EXPIRES AUGUST 8, 2007 Property Tax Exemption for Low-income Rental Housing EXHIBIT A- DEFINITIONS See ORS 65.001(31) and 65.001(33) Definitions on Exhibit A 1. LOW-INCOME. Income at or below 60 percent (60%) of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development (HUD). 2. LOW-INCOME RENTAL HOUSING. Rental housing constructed after February 12, 1990 which is occupied by Iow-income person(s). 3. PUBLIC BENEFIT CORPORATION. A domestic corporation which: a. Is formed as a public benefit corporation pursuant to ORS 65.044 to 65.067, is designated as a public benefit corporation by a Statute, is recognized as tax exempt under Section 501 (c)(3) of the Internal Revenue Code of 1986 or is otherwise organized for a public or charitable purpose; b. Is restricted so that on dissolution it must distribute its assets to an organization organized for a public or charitable purpose, a religious corporation, the United States, a state or a person which is recognized as exempt under Section 501 (c)(3) of the Intemal Revenue Code of 1986; and c. Does not come within the definition of"religious corporation." 4. RELIGIOUS CORPORATION. A domestic corporation which is formed as a religious corporation pursuant to ORS 65.044 to 65.067, is designated a religious corporation by a Statute, or is organized primarily or exclusively for religious purposes. Property Tax Exemption for Low-income Rental Housing SCHEDULE 3 - RENT REGULATORY AGREEMENT PARTIES: City of Eugene, a municipal corporation of the State of Oregon (City) and Public Private Partnerships, Inc., an Oregon S-Corporation (Applicant) RECITALS: A. Pursuant to the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, and the Standards and Guidelines approved by Resolution No. 4327 of the City Council, the City administers a program that provides an exemption from ad valorem taxes for new Iow-income rental housing. B. Applicant has submitted an application for property tax exemption for property located at Marche Chase Drive & Kinsrow, Eugene, OR 97401 (Subject Property), to which this Agreement is attached as Schedule 3, as required by Section 5.1 of the above-referenced Standards and Guidelines. Now, therefore, the parties agree as follows: 1. Report. Applicant agrees that on or before February 1 of the first tax year to which this exemption applies, and on or before February 1 of each year thereafter for the duration of the tax exemption period, it will provide to the City a report that certifies under oath: a. The total number of rental units on the Subject Property which are occupied and unoccupied as of December 31 of the preceding calendar year; b. The income levels of the occupants of the rental units; c. That unoccupied units are being offered for rental solely as a residence for Iow-income persons; and d. That the required rental payment(s) reflect the full value of the property tax exemption granted to Applicant for the Subject Property. 2. Inspections. Applicant agrees that the City may, at its option, inspect the premises at regular intervals to verify the accuracy of the reports required herein and compliance with other provisions of this Agreement. The parties may agree in writing that inspections occur on specific dates, and absent such an agreement, City may perform inspections upon five (5) days' prior written notice to Applicant. 3. Documentation. Applicant agrees to provide City upon ten (10) days' prior written request, documentation of all facts certified in the report required in Section 1 of this Agreement. 4. Notices. Any notice required under this Agreement shall be in writing, and directed to City in care of the Planning & Development Department, 99 West 10th, Eugene OR 97401, and to the Applicant at the address indicated above. 5. Effective Date. This Agreement shall become effective upon approval of the Applicant's application for ad valorem property tax exemption to which this is appended, and shall remain in effect throughout the duration of the tax exemption period. 6. Termination of Agreement. This Agreement shall terminate, with no further action required by either party upon: 6.1 The expiration of the tax exemption period; 6.2 Termination of the tax exemption by the City Council for Applicant's failure to: 6.2.1 Complete construction within the time required, including any extensions granted; 6.2.2 Comply with the provisions of ORS 307.515 to 307.523, the provisions of Sections 2.937 to 2.940 of the Eugene Code, 1971, or the Standards and Guidelines adopted by Resolution No. 4327, or this Agreement; or 6.2.3 Comply with any conditions imposed in the Resolution approving the tax exemption application. 6.3 A determination by the County Assessor that a change of use to other than that allowed has occurred, resulting in an immediate termination of the tax exemption by the County Assessor. DATED this 11th day of June, 2004. Public Private Partnerships, Inc. Print Name of Applicant Signature of Authorized Representative of Applicant Mazen Abualhaija, Vice President Print Name & Title of Authorized Representative 4800 SW Macadam, Ste. 309, Portland, OR 97239 Address of Authorized Representative Accepted this day of ,20 CITY OF EUGENE Tom G. Coyle Executive Director Planning & Development Department Property Tax Exemption for Low-income Rental Housing ~ SCHEDULE 4- CONSENT TO INSPECTION OF PREMISES The undersigned, as Applicant for an exemption from ad valorem taxes for the property located at Marche Chase Drive & Kinsrow, Eugene, OR 97401 , hereby consents that upon approval of the application to which this is appended and occupancy of the Iow-income rental unit(s), authorized representatives of the City of Eugene may, for the duration of the tax exemption period, inspect the above premises at reasonable times, and without prior notice, to ensure that the premises are maintained in decent, safe, and sanitary condition for the occupants thereof. Applicant acknowledges that this consent and the obligation to maintain the premises in a decent, safe, and sanitary condition are material to the City's consideration of Applicant's request for exemption from ad valorem taxes for the described property. DATED this I \'~ day of ~ L~V~-~ ,20 (..? ~ Public Private Partnerships, Inc. Name of AppIila .nt ~,~;~' By: ~,...,".,~"' \ ~'~'~. - Signature of Authorize~ F~epresentative of Applicant Mazen Abualhaija, Vice President Name & Title of Authorized Representative 4800 SW Macadam, Ste. 309 Portland, OR 97239 Address of Authorized Representative Property Tax Exemption for Low-income Rental Housing ~ SCHEDULE 5 CERTIFICATION OF INCOME LEVELS OF LOW-INCOME OCCUPANTS 1 $21,360 2 $24,420 3 $27,480 4 $30,540 5 $33,000 6 $35,400 7 $37,860 8 $42,320 I hereby certify that the rental units for which this exemption is sought are not occupied by, nor will they be offered for rental units to persons whose incomes exceed the levels reflected above for Iow-income persons. DATED this 11th day of June, 2004 Mazen Abualhaija Print Name of Applicant Property Tax Exemption for Low-income Rental Housing LOW-INCOME HOUSING TAX CREDIT PROGRAM RENTS The following Median Family Income (MFI) information for Lane County was excerpted from the State of Oregon's Low-income Housing Tax Credit Program Rents website. This information is updated annually by the State of Oregon and is based on HUD's published Section 8 Income Limits. Using I person for 0 bedroom and 1.5 persons per bedroom for 1-4 bedroom units, deduct utility allowances from these rents to get gross allowable rents. Consult tax advisor to assure your management plan's compliance with program Section 8 income limits by county. See the State of Oregon's Low-income Housing Tax Credit Program website for more information about the rent level information: http://www.hcs.state.or, us/housing/lihtc/index.html