HomeMy WebLinkAboutResolution 2018-17 06/25/2018 CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. 2018-17
A RESOLUTION ADOPTING STANDARDS AND GUIDELINES FOR THE CITY'S LOW-
INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION PROGRAM, SPRINGFIELD
MUNICIPAL CODE SECTIONS 3.500-3.508
WHEREAS, ORS 307.515-307.535 allows cities to establish and implement a program
exempting low-income rental housing from ad valorem real property taxes for twenty years;
WHEREAS, the City of Springfield wants to encourage the construction of low-income
rental housing within the City of Springfield;
WHEREAS, the Council adopted corresponding municipal code sections 3.500-3.508
establishing an ad valorem real property tax exemption program pursuant to ORS 307.515-
307.535;
WHEREAS, ORS 307.521(4) requires that prior to any processing applications for
exemptions under the program, the City must adopt program standards and guidelines, which
include policies to be complied with prior to granting approval of an application;
WHEREAS, these Standards and Guidelines, attached as Exhibit A and incorporated
herein by reference, provide the process to be followed by the City Manager in reviewing and
making recommendations on low-income rental housing property tax exemption applications;
WHEREAS, Section 4.2 of these Standards and Guidelines reference the application of
the exemption to the tax levy, as provided in ORS 307.519, if, upon request by the City, the
rates of taxation of such taking districts whose governing boards agree to the policy of
exemption under ORS 307.515-307.523, when combined with the rate of taxation of the City,
equals 51 percent or more of the total combined rate of taxation on the property granted
exception;
WHEREAS, these Standards and Guidelines replace previously adopted Standards and
Guidelines (Resolution 93-15);
NOW THEREFORE BE IT RESOLVED, by the Common Council of the City of Springfield as
follows:
1. The Standards and Guidelines for Processing Applications for Low-Income Rental
Housing Property Tax Exemption, attached as Exhibit A hereto, are approved and
adopted as the procedures to be followed in considering applications for exemption, and
the policy contained therein is declared to be the policy of the City of Springfield
governing the basic requirements for the program.
2. The City will formally request that the governing boards of taxing districts within the City
of Springfield agree to the policy of exemption under ORS 307.515 — 307.523.
3. This Resolution will take effect upon adoption by the Council and approval by the Mayor.
Adopted by the Common Council and approved by the Mayor of the City of Springfield,
Oregon, this 25 day of June 7-018 Adopted by a vote of 5 for and 0
against. (1 absent - Stoehr)
Christine Lundberg, M yoi
ATTEST:
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A3 R p a, Cilly Recorder
REVIEWED &APPROVED
ST
OFFICE OF CITY ATTORNEY
RESOLUTION NO. 2018-17
Exhibit A, Page 1 of 3
Exhibit A
Standards and Guidelines
for
Low Income Rental Housing Property Tax Exemption
STANDARDS AND GUIDELINES FOR PROCESSING APPLICATIONS FOR THE LOW-INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION UNDER ORS 307.515 TO ORS 307.537
Pursuant to the provisions of the Springfield Municipal Code Sections 3.500—3.508,the City Manager
shall be governed by the following rules in considering applications and making recommendations for
the low-income rental housing local property tax exemption. These standards and guidelines are
adopted pursuant to ORS 307.521141.
ADMINISTRATIVE PROCESS
For purposes of these rules, the following words and phrases mean:
City Manager. The City Manager of the City of Springfield, or the manager's designee.
Lender. The provider of a loan secured by the recorded deed of trust or
recorded mortgage made to finance the purchase, construction, or
rehabilitation of a property used for low-income housing under the
criteria listed in section 3.506 of this code.
Low-Income. Income at or below 60 percent of the area median income as
determined by the Oregon Housing Stability Council based on
information from the United States Department of Housing and Urban
Development.
Low-Income Rental Housing. Rental housing constructed after April 5, 1993, which is occupied by
low-income persons.
1. Statement of Program Purpose. The intent of the low-Income rental housing tax exemption
program is to benefit low-income residents and provide an incentive that will encourage
construction of housing or conversion of buildings to housing for rent by persons with low incomes.
2. Eligible Property. To be eligible far City property tax exemption hereunder, the property must
comply with Sections 3.504 and 3.506 of the Municipal Code.
RESOLUTION NO. 2018-17
Exhibit A, Page 2 of 3
3.1 The tax exemption is only available for the creation of new units, either through new
construction or through conversion of a building from a non-residential use to new housing
units.
3.2 To qualify,the property must create a minimum of four(4) units to be rented to qualifying
low-income households.
3. Application for Exemption. To be considered complete, an application for property tax exemption
hereunder must comply with Section 3.504 of the Municipal Code. Additionally:
3.1 An application must demonstrate that a portion of housing units will be occupied, or offered
for rent, solely as a residence for low-income persons by December 31" of the first year for
which the tax exemption is requested.
3.2 There is currently no application fee.
4. Components of Tax Exemption. Per statute, an exemption from ad valorem taxes shall be granted
for a period of twenty (20) successive years for the land and the improvements located thereon that
are a part of the low-income rental housing.
4.1 Pro rata tax exemption. The requested tax exemption must reflect the portion of units that
will be occupied solely as a residence for law-income persons.
4.2 Application to tax levy. The exemption would apply to the tax levy of Springfield.The
exemption could also apply to the tax levy of all other taxing districts if the governing bodies
of those taxing districts agree to the exemption. There must be support from enough taxing
districts such thattheir combined rates total at least 51% of the combined rate of all taxing
districts.The City Manager shall notify the Lane County Tax Assessor that an exemption
certified by the city shall apply to the tax levy of all taxing districts in which the property is
located.
5. Policies. In addition to the criteria set forth above and in Sections 3.500—3.508 the Springfield
Municipal Code,the applicant most demonstrate compliance with the following policies in order to
be eligible fora property tax exemption hereunder:
5.1 Rent Regulatory Agreement. The owner must agree to execute and maintain in effect for
the duration of the tax exemption period, a Rent Regulatory Agreement in a farm approved
by the City, and which contains, but is not limited to, provisions establishing regular
reporting requirements and periodic inspection period, and demonstrates that the required
rent payment reflects the benefit of the property tax exemption.
5.2 Inspection of Premises. The owner must consent in writing that for the duration of the tax
exemption period the City may inspect the property for which the exemption is granted at
RESOLUTION NO.2018-17
Exhibit A, Page 3 of 3
reasonable times, without prior notice, to ensure that the premises are maintained in
decent, safe, and sanitary conditions for the occupants.
6. Recommendation on Applications. Upon receipt of an application for property tax exemption
hereunder,the City Manager shall:
6.1 Review the application to verify that the applicant has provided the information required
and paid the required fee. The City Manager shall promptly notify the applicant of any
omissions.
6.2 If necessary, establish a meeting with the applicant, or the applicant's authorized
representative to review the application.
6.2 Make a written recommendation to Council in sufficient time to allow the Council to take
final action upon the application and certify the results of the action to the county assessor
within 60 days from the date the Application is filed. The recommendation shall be based
upon and contain findings of compliance or non-compliance with these Standards and
Guidelines, Sections 3.506(1)through 3.5064) of the Springfield Municipal Code, Council
resolutions, ordinances, and adopted policies,and applicable State statutes, that support
the recommendation.
7. Final Action on Applications. Upon receipt of the City Manager's recommendation, the City Council
shall consider the application and adopt a resolution granting or denying the property tax
exemption, per Sections 3.506(5)through 3.5067)of the Municipal Code.
8. Termination of Exemption. Section 3.508 of the Municipal Code outlines the criteria for
termination of the exemption.
9. Amendments to Guidelines. The City Manager may, from time to time, propose such revisions,
deletions, or amendments to these Standards and Guidelines as deemed necessary or desirable for
the efficient implementation of the low-income rental housing property tax exemption program, but
no such revision, deletion, or amendment shall be effective until approved by Council Resolution.
RESOLUTION NO. 2018-17