HomeMy WebLinkAboutOrdinance 6383 06/25/2018 CITY OF SPRINGFIELD, OREGON
ORDINANCE NO. 6383 (GENERAL)
AN ORDINANCE CONCERNING PROPERTY TAX EXEMPTION FOR LOW-INCOME
RENTAL HOUSING; AMENDING SECTIONS 3.500, 3.502, 3.504, 3.506, AND 3.508 OF
THE SPRINGFIELD MUNICIPAL CODE; ADOPTING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Springfield has a shortage of affordable housing and the cost of housing
relative to household incomes is rising;
WHEREAS, the City of Springfield has developed an Affordable Housing Strategy that identifies
and implements various initiatives to help address this issue;
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, to comply with ORS 307.515-307.535, the Council adopted the Tax Exemption for
New Low-Income Housing on February 1, 1993 (Ordinance No. 5667) which was incorporated
in the Springfield Municipal Code sections 3.500-3.508;
WHEREAS, the Council has identified the Tax Exemption for Low-Income Rental Housing
program as one tool available to meet some of the objectives of its Affordable Housing
Strategy;
WHEREAS, the Oregon legislature has updated DRS 307.515 through 307.535 since Springfield
first established its program and the Springfield Municipal Code must be changed to reflect the
updated statutes;
NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS
FOLLOWS:
Section 1. Sections 3.500, 3.502, 3.504, 3.506 and 3.508 of the Springfield Municipal
Code are amended as shown and more particularly described and set forth in Exhibit A attached
hereto and incorporated herein by reference.
Section 2. Severability Clause. If any section, subsection, sentence, clause, phrase
or portion of this Ordinance is, for any reason, held invalid or unconstitutional by a court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereof.
Section 3. Effective Date of Ordinance. This ordinance shall become effective 30 days
from the date of passage by the City Council and approval by the Mayor.
ADOPTED by the Common Council of the City of Springfield this 25 day of dune ,
2014 by a vote of 5 for and 0 against. (1 absent - Stoehr)
APPROVED by the Mayor of the City of Springfield this 25 day of June ,
2018
Mayor
ATTEST:
City Recorder
REVIEWED &APPROVED
VTs ❑ F RME:
OFFJCE OF CITY TTOJINLY
ORDINANCE NO. 6383
Exhibit A, Page 1 of 5
Chapter 3 Pubiic Improvements
3.500 Tax Exemption for Low-income Rental Housing
3.500 intent.-
It is the intent of this code to give effect to and adopt the provisions ORS 307.515 through ORS 307.537,
as amended.
3.502 Definitions.
For purposes of sections 3.502 to 3.508, the following words 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 a 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 asdetermined by the Oregon
Housing Stability Council based on information from the United States Department of Housing and
Urban Development.
3.504 Low-Income Rental Housing Property Tax Exemption—Application.
(1) An application for exemption from property taxes hereunder for low-income rental housing
units constructed after the effective date of sections 3.500 to 3.508 of this code shall be filed
with the City Manager, on a form provided by the City Manager, which shall contain the
following, if applicable:
(a) A description of the property, or portion thereof, forwhich the exemption is requested;
(b) A description of the purpose of the project and whether all ora portion of the property
will be used forthat purpose;
(c) A certification of the income levels of low-income occupants;
(d) The proposed recommended rent payments reflect the full value of the property
tax exemption;
(e) A description of how the tax exemption will benefit project occupants;
(f) Evidence that,if unoccupied, the property is offered for rental solely as a residence for
low-income persons,a r i s held for the purpose of developing law-income rental
housing;
(g) Evidence that,if accupied, the property is occupied solely as a residence for low-income
persons;
(h) Evidence that the property is owned or being purchased by a non-profit corporation
that meets the criteria fora public benefit corporation as described in ORS 65.001(3 5),
or a religious corporation as described in ORS 65.001(37);
(i) Evidence that the non-profit corporation expends no more than ten percent of its
annual income from residential rentals for purposes other than acquisition,
maintenance, or repair of residential rental property for low-income persons, orfarthe
provision of on-site child care services for residents of the rental property;
ORDINANCE NO.6383
Exhibit A, Page 2 of 5
W A description of the plans for deveIopment of the property if the property is being held
forfuture low-income rental housing development; and
(k) Any other information required by the City Manager.
(2) The information contained in the application shall he verified by oath or affirmation of the
applicant.
(3) At the time the application is filed,the applicant shall submit the application processing fee.The
application fee will be set by resolution of the Council, in consultation with the County Assessor.
If the application is approved, the portion of the fee attrihutable to the County Assessor'scost in
administering the program shall be paid by the City to the County Assessor. If the application is
denied,the City shall retain that portion of the application fee attributable to its own
administrative costs and shall refund the portion attributable to the County Assessor's
administrative costs to the applicant.
(4) An application forexemption hereunder shall be filed on or before December 1o the calendar
year immediately precedingthe first assessment year forwhich an exemption is requested.
However, if the property is acquired after November 1st,the application shall be made within
30 days after the date of acquisition, but no later than December 31 of that same ca lendaryea r,
in order to be considered for the following assessment year.
(5) An application which does not contain all the required information and is not accompanied by
the required fee shall be returned. Any application returned for these reasons shall be deemed
not to have been filed.
(6) Notwithstanding the dates specified in 0R 307.517 and 307.518, property granted exemption
pursuant to an application filed under sections 3.502 to 3.508 of this code before the date
specified in ORS 307.523, shall continue to receive the exemption on the same terms, including
duration, on which the exemption was granted.
3.506 Low-Income Rental Housing Property Tax Exemption—Review, Approval oraenial of
Application.
(1) Upon receipt of the application and required fee,the City Manager shall review the application
and make a written recommendation thereon to the Council in sufficient time to allow the
Council to act within 60 days from the date the application is filed.
(2) Upon receipt of the City Manager's recommendation, the Council shall consider the application
and grant or deny the property tax exemption.The City Manager shall recommend approval of
an application, and the Council shall grant the exemption upon determining satisfactory
compliarice with or(in it_igation of the following criteria:
(a) If unoccupied, the property, or portion thereof subject to the property tax exemption, is
offered for rental solely as residence for low-income person, oris held for the purpose of
developing low-income rental housing;
{b} If occupied, the property, or portion thereof subject to the property tax exemption, is
occupied solely as a residence by low-income persons;
{c} The required rent payment reflects the full value of the property tax exemption;
(d) The housing units on the property were constructed afterthe effective date of sections
3.500 to 3.508 of this code;
(e) The policies set forth in the Standards and Guidelines for Low-income Rental Housing
Tax Exemption adopted by Council resolution;
(f) The proposed development does not cause displacement of low-income persons unless
the City and developer can reach agreement on provisions (to be provided by the
developer) that reflect satisfactory mitigation thereof;
ORDINANCE NO. 6383
Exhibit A, Page 3 of 5
(g) The proposed development does not cause destruction of historic structures unless
criteria established in Section 3.3-900 of the Springfield Development Code,are met,
and destruction is granted by the Historic Commission; and
(h) The proposed development is otherwise consistent with this code and adopted City
regulations and policies.
(3) As an alternative to an application considered under subsection (2)of this section, the City
Manager shall recommend approval of an application, and the Council shall grant the exemption
upon determining the applicant meets the criteria set forth in subsections (2)(e), (f),(g),and (h)
of this section and all the following criteria:
(a) If unoccupied, the property isoff ered for rental solely as a residence forlow-income
persons, or is held farthe purpose of developing low-income rental housing;
(b) If occupied, the property is occupied solely as a residence for low-income persons;
(c) The applicant's application was filed prior to the dates specified in ORS 307.517 and
307.518;
(d) The property is owned or being purchased by a non-profit corporation organized in a
manner that meets the criteria fora public benefit corporation, as described under ORS
65.001 (31) or for a religious corporation, as described under ORS 65.001(33); and
(e) The property is owned or being purchased by a non-profit corporation that expends no
more than ten percent of its annual income from residential rentals for purposes other
than acquisition, maintenance or re pair of residential rental property for low-income
persons, or for the provision of on-site child care services for residents of the rental
pro pe rty.
(f) For purposes of this subsection, a non-profit corporation that has only a leasehold
interest in property is considered to be a purchaser of that property if the non-profit
corporation is obligated under the terms of the lease to pay the ad valorem taxes on the
real and personal property used in the rental activity on that property, or the rent
payable has been established to reflect the savings resulting from the exemption from
taxation.
(4) At the meeting at which the City Manager's recommendation is considered, the Council shat!
adopt a resolution approving the application and granting the property tax exemption, or ado pt
a resolution disapproving the application and denying the property tax exemption.
(5) A resolution approving an application shall contain:
(a) The owner's name and address;
(b) The description of the development;
(c) The legal description of the property arthe County Assessor's property account number;
(d) Any specific conditions upon which the approval is based;
(e) If only a portion of the property is approved, a description of the portion approved; and
(f) A certification that the property or portion thereof is exempt from ad valorem taxation.
(6) Within 10 days from the date of the approval resolution, the City Manager shat) forward to the
applicant a copy of the resolution adopted by the Council approving an application, and,on or
before April 1fol Iowing approval,shall file a copy thereof with the County Assessor. The copy
shall contain therein or be accompanied by a notice explaining to the applicant the grounds for
possible termination of the exemption prior to the end of the exemption period or the reafter,
and the effects oftermination.
ORDINANCE NO. 6383
Exhibit A, Page 4 of 5
(7) A resolution denying an application shall state the reasons for denial, shall be forwarded to the
applicant within 10days of its adoption, and shall inform the applicant of the rightto appeal in
the manner set forth in ORS 34.010 to 34.11X}.
3.508 Low-Income Rental Housing Property Tax Exemption----Termination.
(1) If,after resolution approving an application for exemption hereunder has been filed with the
County Assessor, the City Manager finds that:
(a) Construction ordeveiopment of the exempt property differs from the construction or
development described in the application for exe mption, or on or before the dates
specified in ORS 307.524, and no extensions orexceptions as provided in subsection (4)
hereof have been granted; or,
(b) The applicant has failed to comply with the provisions of DRS 307.515 to 307.523, the
provisions of this code, any provisions of the standards and guidelines adopted by
Council resolution; or
(c) The applicant has failed to comply with any conditions imposed in the resolution
approving the application;
the City Manager shall recommend to-the Council, and notify the owner of the property, at-the
owner's last known address, and every known lender,atthe last known address of each such
lender, of the manager's recommendation that the exemption be terminated.The notice shall
clearly state the reasons for the proposed termination, and shall require the owner to appear
before the Council, ata time specified in the notice,which shall not be less than 20 days from
the date the notice was mailed,to show cause, if any exists,why the exemption should not be
terminated.
(2) If the owner fails to appear before the Council at the time specified inthe notice, or if the owner
appears and fails to show cause why the exemption should not be terminated, the City Manager
shall notify every known lender and shall allow each such lender not less than 30 days afterthe
date the notice of the failure to appear and show cause is mailed to cure any noncompliance or
to provide assurance adequate to the Council that all noncompliance shall be remedied. If the
owner falls to appear and show cause why the exemption should not be terminated and the
lender fails to cure or give adequate assurance any noncompliance will be cured, the Council
shall adopt a resolution terminating the exemption, which shall contain itsfindings in support
thereof. Copies of the resolution shah be filed with the County Assessor and mailed to the
property owner, at the owner's last address, and the lender, at the lender's last known address,
within 10 days from the date adopted.If a determination is made that the exemption should
continue as previously granted,the Council shall adopt a motion rejecting the manager's
recommendation, and notify the property owner of that action within 10 days from the date of
the hearing.
(3) All reviews of the Council action in denying an application orterminating an exemption shall be
governed by the procedures set forth in ORS 34.010 to 34.100 and correction of assessments
and tax rolls and the evaluation of the property shall be in conformity with subsection (2)of TORS
307.533. The Council's action on an exemption shall not be a land use decision forpurposes of
administrative review.
(4) Upon receipt of a request from the property owner, the Council may, by resolution, extend the
deadline beyond the dates specified in ORS 307.535, for completion of construction of the low-
income rental housing fora period not to exceed 12 consecutive months, if itfinds the failure to
complete construction by the dates specified in ORS 307.535, was due to circumstances beyond
the control of the owner, and that the owner had been and could reasonably be expected to act
ORDINANCE NO. 6383
Exhibit A, Page 5 of 5
in good faith and with due diligence. If property granted an exemption hereunder is
subsequently destroyed by fire oract of God,or is no longer capable of owner-occupancy due to
circumstances beyond the control of the owner, the exemption shall cease, but no additional
taxes shall be imposed upon the property under ORS 307.531 or 307.533.
(5) Any exemption granted by the Council shal I te rmi nate immediately without right of notice or
appeal, in the event the County Assessor determines that a change of use to other than that
allowed has occurred forthe housing unit,or portion thereof, ora declaration asdef ined in ORS
100.005 is presented to the County Assessor or tax collector for approval under ORS 100.100.
Termination shall be in accordance with the provisions of ORS 307.531.
ORDINANCE NO. 6383