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HomeMy WebLinkAboutItem 2D: Resolution on Low-Income Rental Housing Property Tax Exemption for City View Street ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: A Resolution Approving a Low-Income Rental Housing Property Tax Exemption for the Property Located at 1535-1563 City View Street, Eugene, Oregon (St. Vincent De Paul Society of Lane County, Inc./Applicant) Meeting Date: July 23, 2012 Agenda Item Number: 2D Department: Planning and Development Staff Contact: Becky L. Wheeler www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT The City Council is asked to approve a resolution for a 20-year, low-income rental housing property tax exemption for Stellar Apartments, located at 1535-1563 City View Street. The developer of the project is St. Vincent de Paul Society of Lane County, Inc. (SVDP). The ownership entity is Stellar Apartments Limited Partnership. BACKGROUND The City of Eugene utilizes federal and local subsidies to facilitate the development of housing affordable to low-income persons. Each year, the City issues a Housing Request for Proposals to identify proposed developments. The council typically awards land, federal HOME Investment Partnerships funds, and Systems Development Charge waivers to the selected development proposal. These local resources are combined with state and federal subsidies in order to achieve rents affordable to low-income persons. In addition, approving Stellar Apartment’s property tax exemption application reinforces the Envision Eugene pillar of providing housing affordable to all income levels. The Envision Eugene Housing Affordability Pillar includes strategies to meet the growing and changing housing needs of Eugene residents by supporting subsidized affordable housing projects. Continuing to provide property tax exemptions to low-income rental housing developments has been identified as an action to help successfully implement this strategy. Summary of low-income rental housing property tax exemption program - The City adopted the low- income rental housing property tax exemption program in 1990. Since then, Eugene has approved tax exemptions for more than 20 developments with over 1,000 units. In 2011, the council unanimously approved extending the 20-year, low-income rental housing property tax exemption program for an additional ten years. The approved ordinance also enables recipients to reapply for the 20-year, low- income rental housing property tax exemption after the initial 20-year period has expired. The council reviews each tax exemption request on a case-by-case basis. Most recently, the council approved a low-income rental housing tax exemption for Metropolitan Affordable Housing’s Willakenzie Crossing Apartments in June, 2011. If an application meets the substantive criteria [EC 9.239(2)(a)-(i)] as referenced in the Report and Recommendation (Attachment A), the City must grant S:\CMO\2012 Council Agendas\M120723\S1207232D.doc the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; it would need to be made by a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption for Stellar Apartments - The requested tax exemption is for Stellar Apartments, a 54-unit affordable housing development providing rental housing to individuals and families earning at or below 50 percent of the Area Median Income. The development is located at 1535-1563 City View Street. The development site is close to shopping, jobs, public transit, schools, city parks, and other services. Stellar Apartments includes a large community center and garden, children’s play area, and ample bike parking. SVDP proposed the Stellar Apartments project through the 2010 Annual Housing Request for Proposals. In September, 2010, the council unanimously awarded SVDP federal HOME funds provided by the City ($860,000) and Systems Development Charge waivers ($60,000) to subsidize development of the project. SVDP was also awarded the Westmoreland Landbank site through the process. At that time, SVDP notified the City that it would seek a property tax exemption in order to achieve rents affordable to low-income persons. Construction of Stellar Apartments will be completed by July 31, 2013, and tenants will move in shortly thereafter. A grand opening event will be held summer 2013. The requested exemption meets the substantive criteria [EC 9.239(2)(a)-(i)] as shown in the Report and Recommendation (Attachment A). RELATED CITY POLICIES The proposed tax exemption supports multiple City priorities and policies including the Eugene- Springfield 2010 Consolidated Plan, Growth Management Policies, Envision Eugene, and the Housing Dispersal Policy. Eugene-Springfield 2010 Consolidated Plan -This plan identifies a need for affordable housing for low-income persons and sets a five-year goal of developing 500 new units of affordable housing. The proposed project directly supports the objective by creating 54 units for low-income families and individuals. Eugene Adopted Growth Management Policies - The City of Eugene affordable housing development programs and Stellar Apartments support multiple Growth Management Policies including:  Promote construction of affordable housing.  Encourage in-fill, mixed-use, redevelopment, and higher density development.  Improve the appearance of buildings and landscapes.  Provide for a greater variety of housing types. Envision Eugene Plan – This plan identifies strategies and goals (pillars) that help the City of Eugene plan for growth over the next 20 years. The Envision Eugene proposal’s Housing Affordability Pillar includes strategies to meet the growing and changing housing needs of Eugene residents by supporting subsidized affordable housing projects. Continuing to provide property tax exemptions to low-income rental housing developments has been identified as an action to help successfully implement this strategy. S:\CMO\2012 Council Agendas\M120723\S1207232D.doc Housing Dispersal Policy - The City Council has established a Housing Dispersal Policy which seeks to maximize housing choices for low-income families and integrate housing throughout the City of Eugene. COUNCIL OPTIONS The City Council may approve or deny the tax exemption. CITY MANAGER’S RECOMMENDATION The City Manager recommends the adoption of the resolution granting a 20-year, low-income rental housing property tax exemption for the property located at 1535-1563 City View Street, Eugene, Oregon (Assessor’s Property Account Number 0483857). SUGGESTED MOTION Move to adopt Resolution 5067, approving a 20-year, low-income rental housing property tax exemption for the property located at 1535-1563 City View Street, Eugene, Oregon (Assessor’s Property Account Number 0483857). ATTACHMENTS A.Report and Recommendation B.Resolution to approve the tax exemption C.Resolution to deny the tax exemption FOR MORE INFORMATION Staff Contact: Becky L. Wheeler Telephone: 541-682-5532 Staff E-Mail: becky.l.wheeler@ci.eugene.or.us S:\CMO\2012 Council Agendas\M120723\S1207232D.doc ATTACHMENT A S:\CMO\2012 Council Agendas\M120723\S1207232D.doc S:\CMO\2012 Council Agendas\M120723\S1207232D.doc ATTACHMENT B RESOLUTION NO. 5067 A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 1535-1563 CITY VIEW STREET, EUGENE, OREGON. (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC. / APPLICANT.) The City Council of the City of Eugene finds that: A. Stellar Apartments Limited Partnership (with St. Vincent de Paul Society of Lane County, Inc. as general partner) is the owner of real property located at 1535-1563 City View Street, Eugene, Oregon, 97402 (Assessor’s Map 17-04-36-33; Tax Lot No. 201; Assessor’s Property Account Number 0483857). St. Vincent de Paul Society of Lane County, Inc. (general partner and “the applicant”), located at P.O. Box 24608, Eugene, Oregon, 97402 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 tax exemption is being sought for the project, which will consist of 54 residential units and common areas (community center & garden, children’s play area, and bike parking) that are being constructed on the property and for the parcel of land, all of which will be used for low-income housing. Construction is expected to be completed by July 31, 2013. C. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation, which is attached to this Resolution as Exhibit A, recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents and fees required by the application and Section 2.938(1) of the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 5028. In addition, as described more fully in Exhibit A, the applicant has complied with the criteria for approval provided in Section 2.939(2) of the Eugene Code, 1971. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, and the findings in the Community Development Manager’s Report and Recommendation attached as Exhibit A, the City Council approves the application of St. Vincent de Paul Society of Lane County, 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 1535-1563 City View Street, Eugene, Oregon, 97401 Resolution - Page 1 of 2 (Assessor’s Map 17-04-36-33; Tax Lot No. 201; Assessor’s Property Account Number 0483857), which will consist of 54 residential units and common areas, and for the parcel of land. All units shall be offered for rent to persons whose earnings fall at or below 50% of the Area Median Income based on their family size. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2013, and continuing for a continuous period of twenty (20) years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after an opportunity to be heard if: 2.1 Construction or development of the exempt property differs from the construction or development described in the application for exemption, or was not completed by January 1, 2020, and no extensions or exceptions were granted; or 2.2 The applicant 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. 5028, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing unit, or portion thereof, or, if after the date of this approval, a declaration as defined in ORS 100.005 is presented to the county assessor or tax collector for approval under ORS 100.110. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten (10) days from the date of adoption of this Resolution, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2013. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution shall become effective immediately upon its adoption. rd The foregoing Resolution adopted the 23 day of July, 2012. _____________________________________ City Recorder Resolution - Page 2 of 2 ATTACHMENT C RESOLUTION NO. _____ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 1535-1563 CITY VIEW STREET, EUGENE, OREGON. (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC. / APPLICANT.) The City Council of the City of Eugene finds that: A. Stellar Apartments Limited Partnership (with St. Vincent de Paul Society of Lane County, Inc. as general partner) is the owner of real property located at 1535-1563 City View Street, Eugene, Oregon, 97402 (Assessor’s Map 17-04-36-33; Tax Lot No. 201; Assessor’s Property Account Number 0483857). St. Vincent de Paul Society of Lane County, Inc. (general partner and “the applicant”), located at P.O. Box 24608, Eugene, Oregon, 97402 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 tax exemption is being sought for the project, which will include 54 residential units and common areas (community center & garden, children’s play area, and bike parking) that are being constructed on the property and for the parcel of land, all of which will be used for low-income housing. Construction is expected to be completed by July 31, 2013. C. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation, which is attached to this Resolution as Exhibit A, recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents and fees required by the application and Section 2.938(1) of the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 5028. In addition, as described more fully in Exhibit A, the applicant has complied with the criteria for approval provided in Section 2.939(2) of the Eugene Code, 1971. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of St. Vincent de Paul Society of Lane County, 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 1535-1563 City View Street, Eugene, Oregon, 97401 (Assessor’s Map 17-04-36-33; Tax Lot No. 201; Assessor’s Property Account Number 0483857), because the applicant has failed to demonstrate that the tax exemption is in the public interest. S:\CMO\2012 Council Agendas\M120723\S1207232D.doc Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten days from the date of adoption of this Resolution, along with a notice informing the applicant of the right to appeal in the manner set forth in ORS 34.010 to 34.100. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the _____ day of July, 2012. _____________________________________ City Recorder S:\CMO\2012 Council Agendas\M120723\S1207232D.doc