HomeMy WebLinkAboutResolution 96-18 05/06/1996
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RESOLUTION NO. 96-18
RESOLUTION TO TERMINATE SPRINGWOOD, INC.'S PROPERTY TAX
EXEMPTION THROUGH THE CITY OF SPRINGFIELD'S PROPERTY TAX
EXEMPTION FOR NEW LOW-INCOME ELDERLY RENTAL HOUSING PROGRAM
WHEREAS, by Ordinance No. 5667, Exhibit A, the City enacted a Property Tax
Exemption Program for new low-income elderly rental housing, and
WHEREAS, on June 21, 1993, pursuant to such Program, the City granted
Springwood, Inc., a 20-year property tax exemption of $100,000 annually for the
construction of 429 units of very low-income elderly housing on 29th and Main in
Springfield, Oregon, and
WHEREAS, on April 2, 1996, the Springfield City Council adopted Resolution
No. 96-14, a resolution of findings to terminate Springwood, Inc.'s property tax
exemption through the City of Springfield's Property Tax Exemption for New Low-
Income Elderly Rental Housing Program; and
WHEREAS, on the basis of information provided by staff on April 2, 1996, the
Council did find with respect to said Springwood, Inc. the following:
(a) The Applicant has not complied with the requirements of ORS 307.529,
Exhibit 8, and Ordinance No. 5667 by not completing the construction of the housing
units within two years after June 21, 1993 and it remains uncompleted to date, and
(b) The Applicant has not met criteria set forth in ORS 307.515 or 307.518
which requires the Applicant to create affordable rental housing for low-income
individuals by having the rent payments reflect the full value of the property tax
exemption, and
(c) The Applicant has not complied with the provisions of Ordinance No. 5667
and the standards and guidelines adopted by Council Resolution No. 93-15, Exhibit C,
which require the beneficiaries of the property tax exemption to be low-income elderly
individuals, who meet the age requirements of the Fair Housing Amendments Act of
1988, as implemented in volume 54, Federal Register No. 13, Sections 100.302,
100.303, and 100.304, and
(d) The Applicant has not met the conditions imposed in Resolution No. 93-34,
the resolution approving the Springwood application, Exhibit D, by not constructing 429
units of affordable rental housing for elderly individuals within two years of application
approval, and
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WHEREAS, no extensions or exceptions have been provided by the Council to
. the Applicant from the requirements specified herein above.
NOW THEREFORE, on the basis of the foregoing recitals, the Common Council
hereby determines as follows:
1. Springwood, Inc.'s 20-year property tax exemption of $100,000 annually,
through the City's Property Tax Exemption for New Low-Income Elderly Rental Housing
Program, for the construction of 429 units of very low-income elderly housing on 29th
and Main in Springfield, Oregon be terminated; and
2. A copy of this resolution terminating the exemption shall be filed with the
County Assessor and copies shall be sent to the owners at the owner's last known
address and to any lenders, whose names are provided by the owners, at the last
known address of the lenders within ten days after adoption. The owners include:
Daniel J. Desler, President, 622 South 57th Place, Springfield, OR 97478
Good Neighbor Care, Inc., 382 South 58th Street, Springfield, OR 97478
Michael W. Doyle, Agent for Process, 44 Club Road #200, Eugene, OR 97401
William G. Wheatley, Secretary, 622 South 57th Place, Springfield, OR 97478
Allen Lloyd Johnson, Attorney, 767 Willamette Street, Eugene, OR 97402
Donald H. Burkland, Burkland Lumber Co., P.O. Box 4369, Salem, OR 97302
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The foregoing resolution was adopted by the Common Council and approved by
the Mayor of the City of Springfield this ~ day of May , 1996.
~%~..d
Mayor
Attest:
City Recorder
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LI,TE: S /2./_ 'i b
OFFICE OF crrv ATTORNEY
CfTV ~"'r; St:,'lRH\!Gf=IELD
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f,XHIBIT A ,-
ORDIl~~.l~CE ~~O. :'667
~N ORDINANCE CONCERNING PROPERTY TAX EXEMPTION FOR NEW
LOW-IHCONE HOUSING; ADDING ARTICLE XIV "TAX EXEMPTIOH FOR NEW
LOW-INCOME HOUSING", AND SECTIONS 2-14-1 THROUGH 2-14-4 TO THE
SPRI1~G:rI:t:LD CODE 1965 X;;) J~CL':_,:i:~G X.~ ~'IERGE,;ci.
THE CITY OF SPRINGFIELD, OREGON, DOES ORDAIN AS FOLLOWS:
section 1: There is hereby added to the Springfield Code
1965 a new Article XIV'and Sections 2-14-1 through 2-14-4 of said
Article. and reading as follows:'
"Article XIV Tax Exemotion for New Low-Income Housing
2-14-1 Intent. It is the intent of this Ordinance to give
effect to and adopt the provisions ORS 307~515 through ORS 307.537
as amended.
2-14-2 Definitions. For purposes of section 2-14-2 to
2-14-4, the following words and phrases mean:
- (1) city Manaaer. The City Manager of the city of
Springfield, or the City Manager's designee.
(2) Low-Income. Income lower than established for very
low-income families as defined by 42 U.S.C. section 1437a(b) (2) as
amended before December 1, 1984.
2-14-3 Low-Income Rental Housinq 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 2-14-1 to 2-14-5 of this Code shall
be filed with the City Manager, on a form provided by the city
Manager, which..s!tall contain the following:
(a) A description of the property, or portion
thereof, for which the exemption is requested;
(b) A description of the purpose of the project and
whether all or a portion of the property will be
used for that purpose;
(e) A certification of the income levels of
low-income occupants;
ORDINANCE - Page 1
A-I
'ORDIN~HCE No.5667
PAGE 3
(d)
The housing units on the property were
constructed after the effective date of Sections
2-14-1 to 2-14-5 of this Code;
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(e) The'policies set forth in the Standards and
Guidelines for Low-Income Rental Housing Tax
~xewption adopted by Council nesolution;
(f) The proposed davelop@ent 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 th8reof;
(g) The proposed ~evelopment does not cause
destruction of historic structures unless
criteria established in Article 30.100 of the
Springfield Development Code, 1986, are @et, and
destruction is granted by the Historical
Commission; and
(h) The proposed development is otherwise consistent
with this Code and adopted City regulations and
policies.
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(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 follo~ing criteria:
(a) If unoccupied, the property is offered for rental
solely as a residence for low-income persons;
(b) If occupied, the property is occupied solely as a
residence for low-income persons;
(c) The applicant's Application was filed prior to
July I, 2000;
(d) "The property is owned or being purchased by a
nonprofit corporation organized in a manner that
meets the criteria for a public benefit
corporation, as desc~ibed under ORS 65.001(31) or
for a religious corporation, as described under
ORS 65.001(33); and
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(e) The property is owned or being purchased by a
nonprofit corporation that expends no more than
ten percent I of i~s annual income from residential
rentals for'purpo~es other than acquisition,
maintenance or repair of residential rental
property for low-income persons.
ORDINANCE - Page 3
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PAGE 5
1, 2000, and no extensions or exceptions as
proviced in su~section (4) hereof have been
granted; or,
(b)
The applicant has failed to comply with the
provisions of C^S 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
ccnditions i~pc5ed in the resolution approving
the Applicationi
the City Manager shall recommend to the Councii, and notify the
owner of the property, at the owner's last known address, of the
Manager's reco~endaticn 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, at a time specified in the notice, which shall not be
less than 20 days fro~ the date the notice was mailed, to show
cause, if any exists, why the exe~ption should not be terminated.
(2) If the owner fails to appear before the Council at the
time specified in the notice, or if the owner appears and fails to
show cause why the exe~ption should not be terminated, the Council
shall adopt a resolution terminating the exemption, which shall
contain its findings in support thereof. Copies of the resolution
shall be filed with the County Assessor and mailed to the property
owner, at the owner's last 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 Hanager's recommendation, and notify the property
owner of that action within 10 days from the dat~ of the hearing.
(3) All reviews of the Council action in denying an
Application or terminating 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 ORS 307.533. The
Council's action"on an exemption shall not be a land use decision
for purposes of administrative review.
(4) Upon receipt of a request from the property owner, the
Council may, by resolution, extend the deadline beyond January 1,
2000 for completion of construction of the low-income rental
housing for a period not to exceed 12 consecutive months, i.e.
January 1, 2001, if it finds the failure to complete construction
by January 1, 2001, was due to circu~stances beyond the control of
the owner:, and that the owner had been and could reasonably be
expected to act in good faith and with due diligence. If property
granted an exemption hereunder is subsequently destroyed by fire
or act of God, or is no longer capable of owner-occupancy due to
ORDINP~CE - Page 5
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'~W~c'.E NO. 5667, I" .' /., ,
\~"1 J $ectiC,il 3. It is:.creby :ct.:.....d 2.;:d detenr.i."led th3t mtters iregarding 'property
tax exemption for ne\V 10\\'- income housing are matters affectilig the public healtll.
safety and h'elfare and that an emergency exists and that thil ordinance sh~ll
therefore take effect imrr:ediately upon its passage by the Ciity Cotmcil and
approval by the Mayor. I
/---- ADOPTED by the Common Council of the. city of !pringfield,
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this 1ST
day of
FEBRUARY
, 1993 by a vote of
4
for and
2
against.
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APPROVED by the Mayor of the city of springfielld this 1ST
, 1993. . I
~rg/7t~~;6b
day of FEBRUARY
ATTEST:
~iW1J Jtz;;~
City Recorder
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OPJ)INA.\CE - 7
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Title 29
EXHIBIT B
PROPERTY SUBJECT TO TAXATION; EXEMPTIONS 307.517
poration submits to the assessor details as to tions of the camp would nJ justify verifica-
the rentals for the prior year and proof that tion of compliance with thel health code for
the payments required by ORS 307.490 have farm labor camps, even tho,ugh verification
been made. [1973 c.382 ~; 1991 c.459 ~62; 1995 c.278 has been made under ORS 307.500, the ap-
~35] propriate authority shall ndtify the county
307.500 Assessor transmitting claim to assessor who shall cancel th~ exemption and
department and other agencies; health cause the owner to be billed I for the real and
code compliance required. (1) Immediately personal property taxes the owner would
upon receipt of the claim or any subsequent otherwise be liable to pay. [~973 c.382 ~]
rental statement, the county assessor shall 307.510 Appeal to depaHment by tax-
promptly transmit one copy of the claim to payer. Any taxpayer aggrie~ed by any deci-
the Department of Revenue. The rent subse- sion under ORS 307.480 to 307.510 may
quently reported for the eligible child care appeal to the Department oflRevenue within
facility or eligible farm labor camp for which the time ~rovided and in th~ manner speci-
the claim is made is subject to verification fied by ORS 306.520 (1975, Replacement Part).
and modification by the Department of Re- [1973 c.382 ~7) I
venue. Note: The amendments to 307.510 by section 76,
(2) The county assessor shall promptly chapter 650, Oregon Laws 1995, bei:ome operative Sep-
tember I, 1997. See section 116, chapter 650, Oregon
transmit one copy of each claim or statement Laws 1995. The text that is operati~e on and after Sep-
for exemption to the State Fire Marshal for tember I, 1997, is set forth for the user's convenience.
verification of compliance with applicable 307.510. Any taxpayer aggrievJd by any decision
laws and rules and regulations relating. to under ORS 307.480 to 307.510 ma>! appeal to the tax
safety from fire. If the State Fire Marshal court within the time provided and in the manner spec-
refuses such verification, the county assessor ilied by ORS 305.404 to 305.560. I
shall deny the claim and cause the nonprofit I
corporation to be billed for the real and per- (Low-income Rental :p:ousing)
sonal property taxes it would otherwise be 307.515 Definitions for ORS 307.515 to
liable to pay. 307.523. AB used in ORS 307.515 to 307.523:
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(3) The county assessor shall promptly (1) "Governing body" means the city or
transmit one copy of each claim or statement county legislative body having jurisdiction
for exemption of an eligible farm labor camp over the property for whicH an exemption
to the appropriate authority under the Ore- may be applied for under <DRS 307.515' to
gon Safe Employment Act for verification of 307.523. I .
compliance with the health code for farm la-, (2) "Lender" means the pr:ovider of a loan
bor camps. That authority shall refuse to secured by the recorded deed of trust or re-
verify compliance if the farm labor camp corded mortgage made to fihance the pur-
does not comply with the health code appli- chase" construction or rehdbilitation of a
cable to it or if access to the camp for in- rt d fi I' I h' d
spection has been denied the county assessor prope. y .use. or. ow-mcome ousmg un er
the cntena listed m ORS 307.517 or 307.518.
or the authorized representative of the I
county assessor. If verification is refused, the (3) "Low-income" means income at or be-
county assessor shall deny the claim and low 60 percent of the area median income as
cause the nonprofit corporation to be billed determined by the State Hbusing Council
for the real and personal property taxes it based on information from the United States
would otherwise be liable to pay. Department of Housing and Urban Develop-
ment. [1989 c.8OS ~1; 1991 c.930 ~3; 11993 c.168 ~3)
(4) If the claim or statement or any part Note: 307.515 to 307.537 were ~cted into law by
thereof applies to property used for an eligi- the Legislative Assembly but were ndt added to or made
ble child care facility, the county assessor a part of ORS chapter 307 or any seHes therein by leg-
shall promptly transmit a copy to the Child islative action. See Preface to Oregoh Revised Statutes
Care Division for verification of certification. for further explanation. I
If the division refuses such verification, the 307.517 Criteria for tax exemption. (1)
county assessor shall deny the claim and Property or a portion of th~ property that
cause the nonprofit corporation to be billed meets the following criteria shall be exempt
for the real and personal property taxes it from taxation as provided in ORS 307.517 to
would otherwise be liable to pay. [1973 c.382 307.523: I
~5; 1995 c.278 ~36]
(a) The property is offered for rent.
307.505 Inspection of farm labor I
camps; effect of failure to comply with (b) The property is occupied solely by
health code. The appropriate authority un- low-income persons. I
der the Oregon Safe Employment Act shall (c) The required rent p~yment reflects
cause an inspection to be made of any farm the full value of the property tax exemption.
labor camp that has filed for an exemption (d) The exemption has beJn approved as
at any time prior to August 15. If the condi- provided in ORS 307.523. I
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REvENUE AND TAXATION
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(a) A nonprofit corporation is a general
partner of the partnership; and
Cb) The nonprofit corpoJation is responsi-
ble for the day-to-day operiltion of the prop-
erty that is the subject qf the exemption
under ORS 307.519 to 307.523. [1991 c.930 ~2;
1993 c.168 ~; 1995 c.79 ~121; 1995 c.702 ~11
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Note: The amendments to 307.518 by section I,
chapter 702, Oregon Laws 1995, apply to tax years be-
ginning on or after July I, 1996. ~ section 3, chapter
702, Ore~on Laws 1995. The text that applies until July
I, 1996, mcluding amendments b~ section 121, chapter
79, Oregon Laws 1995, is set forth for the user's con-
venience. I
307.518. (1) Property or a portion of property that
meets all of the following criteria ~shall be exempt from
taxation as provided under ORS 3017.519 to 307.523:
(a) If unoccupied, the property is offered for rental
solely as a residence for low-income persons.
(b) If occupied, the property lis occupied solely as
a residence for low-income person~.
(c) An exemption for the property has been ap-
proved as provided under ORS 307.523, pursuant to an
application filed before July I, 2000.
(d) The property is owned ot being, purchased by,
a nonprofit corporation organized in a manner that
meets the criteria for a public b~nefit corporation, as
described under ORS 65.001 (31) or for a religious cor-
poration, as described under ORS 95.001 (33).
(e) The property is owned or, being purchased by a
nonprofit corporation that expen:ds no more than 10
percent of its annual income from (residential rentals for
purposes other than the acquisition, maintenance or re-
pair of residential rental property . for low-income per-
sons or for the provision of on-site child care services
for the residents of the rental proPerty.
(2) For the purposes of thi~ section, a nonprofit
corporation that has only a leasehold interest in prop-
erty is considered to be a purchaser of that property if:
(a) The nonprofit corporatioh is obligated under
the terms of the lease to pay the I ad valorem taxes on
the real and personal property used in the rental activ-
ity on that property; or I
(b) The rent payable has been established to reflect
the savings resulting from the exemption from taxation.
Note: See note under 307.515.1
307.519 Exemption liniited to tax levy
of governing body th~t adopts ORS
307.515 to 307.523; exception. (1) Except as
provided in subsection (2) of this section, the
exemptions provided by ~RS 307.515 to
307.523 only apply to the t~ levy of a gov-
erning body that adopts the provisions of
ORS 307.515 to 307.523. i
(2) The exemptions provided by ORS
307.515 to 307.523 shall apply to the tax levy
of all taxing districts in wlllch property cer-
tified for exemption is lochted when, upon
request of a governing body! that has adopted
the provisions of ORS 307.51115 to 307.523, the
rates of taxation of such taxing districts
whose governing boards agree to the policy
of exemption under ORS 307.515 to 307.523,
when combined with the dte of taxation of
the governing body that I adopts the pro-
visions of ORS 307.515 to 307.523, equal 51
percent or more of the total combined rate
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307.518
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(e) The housing units on the property
were constructed after the local governing
body adopted the provisions of ORS 307.515
to 307.523.
(2) For the purposes of subsection (1) of
this section, a person that has only a
leasehold interest in property is deemed to
be a purchaser of that property if:
(a) The person is obligated under the
terms of the lease to pay the ad valorem
taxes on the real and personal property used
in this activity on that property; or
(b) The rent payable has been established
to reflect the savings resulting from the ex-
emption from taxation. [1989 c.803 ~2)
Note: See note under 307.515.
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307.518 Alternative criteria for tax
exemption. (1) Property or a portion of
property that meets all of the following cri-
teria shall be exempt from taxation as pro-
vided under ORS 307.519 to 307.523:
(a) If unoccupied, the property is offered
for rental solely as a residence for low-
income persons.
(b) If occupied, the property is occupied
solely as a residence for low-income persons.
(c) An exemption for the property has
been approved as provided under ORS
307.523, pursuant to an application filed be--
fore July 1, 2000.
(d) The property is owned or being pur-
chased by a nonprofit corporation organized
in a manner that meets the criteria for a
public benefit corporation, as described un-
der ORS 65.001 (31) or for a religious corpo-
ration, as described under ORS 65.001 (33).
(e) The property is owned or being pur-
chased by a nonprofit corporation that ex-
pends no more than 10 percent of its annual
income from residential !'entals for purposes
other than the acquisition, maintenance or
repair of residential rental property for low-
income persons or for the provision of on-site
child care services for the residents of the
rental property.
(2) For the purposes of this section, a
nonprofit corporation that has only a
leasehold interest in property is considered
to be a purchaser of that property if:
(a) The nonprofit corporation is obligated
under the terms of the lease to pay the ad
valorem taxes on the real and personal prop-
erty used in the rental activity on that prop-
erty; or
(b) The rent payable has been established
to reflect the savings resulting from the ex-
emption from taxation.
(3) A partnership shall be considered a
nonprofit corporation for purposes of this
section if:
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Title 29
Page 118
(1995 Edition)
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PROPERTY SUBJECT TO TAXATION; EXEMPTIONS,
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tax year for which exemption is requested,
and shall be accompanied by the application
fee required under ORS 307.527. However,
if the property is acquired I after November
1, the application shall be ,made within 30
days after the date of acquisition.
(2) Within 60 days of thk filing of an ap-
plication under ORS 307.52:1, the governing
body shall take final actioni upon the appli-
cation as provided under ORS 307.527, and
certify the results of the act~on to the county
assessor. I
(3) Upon receipt of certification under
subsection (2) of this sectiort, the county as-
sessor shall exempt the property from taxa-
tion to the extent certified by the governing
body. [1989 c.OO3 ~5; 1991 c.459 ~; 1991 c.930 WI
Note: See note under 307.515. I
307.525 Action agai~ landlord for
failure to reduce rent. Inl addition to any
other provision of law, if a landlord violates
ORS 307.517 (1)(c), a tenant may recover
damages in an amount triple the actual
damages sustained as a result of the vio-
lation. The court may aW:n1d reasonable at-
torney fees to the prevailing party in an
action under this section. I [1989 c.OO3 W; 1995
c.618 W21 i
Note: See note under 307.515. I
307.527 Ordinance app~oving or disap-
proving application; application fee. (1)
Final action upon an. application by the gov-
erning body shall be in the iform of an ordi-
nance or resolution that shall contain the
owner's name and address, I a description of
the housing unit, either the Ilegal description
of the property or the county assessor's
property account number, any specific condi-
tions upon which the approvl' al of the appli-
cation is based and if only a portion of the
property is approved, a d~scription of the
portion that is approved. !
(2) On or before April I 1 following ap-
proval, the governing body spall file with the
county assessor and send tq the applicant a
copy, of the ordinance or resolution approv-
ing or disapproving the application. The copy
,shall.c<?ntain or be accompapied ~y a notice
explammg the grounds for, possIble termi-
nation of the exemption prihr to the end of
the exemption period or th~reafter, and the
effects of termination. In addition, the gov-
erning body shall file with the county asses-
sor on or before April 1 a document listing
the same information otherWise required to
be in an ordinance or resolution under sub-
section (1) of this section, as to each appli-
cation deemed approved und~r this section.
(3) If the application is 'denied, the gov-
erning body shall state in ~ting the rea-
sons for denial and send thel notice of denial
to the applicant within .10 drYS after the de-
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of taxation on the property certified for ex-
emption. [1989 c.OO3 ~3; 1991 c.930 ~]
Note: See note under 307.515.
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307.521 Application for exemption;
contents; policIes for approving applica-
tion. (1) To qualify for an exemption pro-
vided byORS 307.515 to 307.523, the person
shall file an application for exemption with
the governing body. The exemption shall be
for a period of 20 years. The application shall
be filed as set forth in ORS 307.523. The ap-
plication shall include the following informa-
tion, if applicable:
(a) A description of the property or a
portion of the property for which the ex-
emption is requested;
(b) A description of the purpose of the
project and whether all or a portion of the
property is being used for that purpose;
(c) A certification of income levels of
low-income occupants;
(d) A description of how the tax ex-
emption will benefit project residents; and
(e) If the exemption is an exemption de-
scribed under ORS 307.518, evidence satis-
factory to the governing body that the
corporation is nonprofit and meets the crite-
ria for a public benefit corporation or a reli-
gious corporation. '
(2) The applicant shall verify the infor-
mation in the application by oath or affinna-
tion.
(3) Prior to accepting an application un-
der ORS 307.515 to 307.523, a local jurisdic-
tion shall adopt standards and guidelines to
be utilized in considering applications and
making determinations required by ORS
307.515 to 307.537. The standards and guide~
lines shall establish policy governing basic
requirements for approving an application.
POlicies considered may include, but are not
limited to:
(a) Rent regulatory agreements or other
enforcement mechanisms to demonstrate that
the required rent payment reflects the full
value of the property tax exemption.
(b) Enforcement mechanisms to insure
that housing receiving exemptions under
ORS 307.515 to 307.537 are maintained in de-
cent, safe and sanitary conditions for the oc-
cupants.
(c) Methodology and timing for submit-
ting evidence of use of rentals received from
low-income persons. [1989 c.OO3 ~; 1991 c.459 WS;
1991 c.930 ~5J
Note: See note under 307.515.
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307.523 Time for filing application;
certification of exemption. (1) Application
shall be made on or before December 1 of the
calendar year immediately preceding the first
Title 29
307.527
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307.529
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compliance, the governing Ibody shall adopt
an ordinance or resolutionJ stating its find-
ings terminating the exemption. A copy of
the ordinance or resolution shall be filed
with the county assessor, and a copy shall
be sent to the owner at the owner's last-
known address and to the lender at the last-
known address of the lender within 10 days
after its adoption. (1989 c.803 ~8; 1991 c.459 ~; 1991
c.930 ~7; 1993 c.168 ~5J I
Note: See note under 307.515.1
307.531 Termination I of exemption
without notice; grounds; additional taxes
after termination. (1) If, [after application
has been approved under IORS 307.527, a
declaration as defined in ORS 100.005 with
respect to the property is presented to the
county assessor or tax coll~ctor for approval
under ORS 100.110, or if the governing body
should file its termination ~dings with the
county assessor pursuant to IORS 307.529:
(a) The exemption gr~ted the housing
unit or portion under ORS 307.515 to 307.523
shall terminate immediatel~, without right
of notice or appeal; I
(b) The property or aj portion of the
property shall be assessed and taxed as other
property similarly situated"/ is assessed and
taxed; and
I
(c) Notwithstanding ORS311.220, there
shall be added to the gen~ral property tax
roll for the tax year next following the pres-
entation or discovery, to ee collected and
distributed in the same manrter as other real
property tax, an amount equal to the differ-
ence between the" taxes assessed against the
property and the taxes that Fould have been
assessed against the property had it not been
exempt under ORS 307.515 to 307.523 for
each of the years, not to exceed the last 10
years, during which the property was exempt
from taxation under ORS 307.515 to 307.523.
(2) If, at the time of pr~sentation or dis-
covery, the property is no lohger exempt, ad-
ditional taxes shall be colleCted as provided
in this section, but the number of years for
which the additional taxes shall be collected
shall be reduced by one year for each year
that has elapsed since the y~ar the property
was last granted exemption! beginning with
the oldest year for which additional taxes are
due. I
(3) The assessment and tax rolls shall
show potential additional tax liability for
each property granted exemption under ORS
307.515 to 307.523. i
(4) Additional taxes coUkcted under this
section shall be deemed tol have been im-
posed in the year to which the additional
taxes relate. [1989 c.803 s9; 19911 c.4S9 ~6; 1991 c.930
~8J I
Note: See note under 307.515. !
I
1 (1995 Edition)
REVENUE AND TAXATION
=>
nial. The notice shall inform the applicant
of the right to appeal un~er ORS 307.533.
(4) The governing body, after consulta-
tion with the county assessor, shall establish
an application fee in an amount sufficient to
cover the cost to be incurred by the govern-
ing body and the county assessor in adminis-
tering ORS 307.515 to 307.523. The
application fee shall be paid to the governing
body at the time, the application for ex-
emption is filed. If the application is ap-
proved, the governing body shall pay the
application fee to the county assessor for de-
posit in the county general fund, after first
deducting that portion of the fee attributable
to its own administrative costs in processing
the application. If the application is denied,
the governing body shall retain that portion
of the application fee attributable to its own
administrative costs and shall refund the
balance to the applicant. (1989 c.803 ~7; 1995 c.79
~122]
Note: See note under 307.515.
307.529 Notice of proposed termination
of exemption; grounds; ordinance termi-
nating exemption. (1) Except as, provided in
ORS 307.531, if, after an application for ex-
emption under ORB 307.517 has been ap-
proved under ORS 307.527; the governing
body fmds that construction of the housing
unit was not completed within two years af-
ter the date the application was approved or
on or before July 1, 2000, whichever is ear-
lier, or that any provision of ORB 307.515 to
307.523 is not being complied with, or any
provision required by the governing body
pursuant to ORS 307.515 to 307.523 is not
being complied with, the governing body
shall give notice of the proposed 'termination
of the exemption to the owner, by mailing
the notice to the last-known address of the
owner, and to every known lender, by mail-
ing the notice to the last-known address of
every known lender. The notice shall state
the reasons for the proposed termination and
shall require the owner to appear at a speci-
fied time, not less than 20 days after mailing
the notice, to show cause, if any, why the
exemption should not be terminated.
(2) If the owner fails to appear and show
cause why the exemption should not be ter-
minated, the governing body shall notify ev-
ery known lender, and shall allow any lender
not less than 30 days after the date the no-
tice of the failure to appear and show cause
is mailed to cure any noncompliance or to
provide assurance adequate to the governing
body that all noncompliance shall be reme-
,died.
(3) If the owner fails to appear and show
cause why the exemption should not be ter-
minated, and the lender fails to cure or give
adequate assurance of the cure of any non-
Title 29
Page 120
Prt/
PROPERTY SUBJECT TO TAXATION; EXEMPTIONS
I
shall be imposed upon the Iproperty under
ORS 307.531 or 307.533. l1989 c.B03 ~11; 1991 c.459
~; 1991 c.930 ~lOJ I
Note: See note under 307.515.
307.537 Application. (1) 0RS 307.517 ap-
plies to housing units constntcted after J an-
uary 1, 1990, in years begiruiing on or after
January 1, 1990. I
(2) ORB 307.518 applies to housing units
occupied by low-income persons on or after
July 1, 1992, in tax years b~ginning on or
I
after July 1, 1992. I
(3) The amendments to (i)RB 307.521 (1)
by section 5, chapter 930, Oregon Laws 1991,
changing the period of the ~exemption pro-
vided under ORS 307.515 to 307.523 from 10
to 20 years apply to properfty granted ex-
emption pursuant to applica~ion filed on or
after September 29, 1991. [1989 c.B03 ~12; 1991
c.459 ~9; 1991 c.930 ~111 I
Note: See note under 307.515. I
(Nonprofit Corporktion
Low-income HouSing)
I
307.540 Definitions for ORS 307.541 to
307.547. As used in ORS 307.5:41 to 307.547:
(1) "Governing body" meks the city or
county legislative body having jurisdiction
over the property for which) an exemption
may be applied for under ORB 307.541 to
307.547. I
(2) "Low-income" means income at or be-
low 60 percent of the area median income as
detennined by the State Hbusing Council
based on information from th~ United States
Department of Housing and Urban Develop-
ment. [1985 c.660 ~1; 1993 c.168 ~7] I
Note: 307.540 to 307.547 were enacted into law by
the Legislative Assembly but were not added to or made
a part of ORS chapter 307 or any senes therein by leg-
islative action. See Preface to Oregoh Revised Statutes
for further explanation. i
.Note: Section 6, chapter 660, qregon Laws 1985,
provides: 1
Sec. 6. ORS 307.540 to 307.547 1!Pply to assessment
years beginning on or after January I, 1985, and before
July 1, 2004. [1985 c.660 ~; 1993 c.108' ~1]
I
307.541 Nonprofit corporation low in-
come housing; exemption;1 criteria. (1)
Property that meets all of th~ following cri-
teria shall be exempt from taxation as pro-
vided in ORS 307.541 to 307.547:
(a) The property is owne~ or being pur-
~hased by a corporation that is exempt from
Income taxes under section 501(c) (3) or (4)
of the Internal Revenue Code, as amended
before December 1, 1984. i
(b) Upon liquidation, the i assets of the
~orporation are required to b:e applied first
In payment of all outstanding obligations,
and the balance remaining, ili cash and in
kind, to be distributed to cdrporations ex-
, I
, (1995 Edition)
.
307.533 Review; correction of tax rolls;
when tax payable after exemption termi-
nates. (1) Review of a denial of an applica-
tion under ORS' 307.527, or of the
tennination of an exemption. under ORS
307.529, shall be as provided by ORS 34.010
to 34.100.
(2) If no review of the tenninationof an
exemption as provided in subsection (1) of
this section is effected, or upon final adjudi-
cation, the county officials having possession
of the assessment and tax rolls shall correct
. the rolls in the manner provided for omitted
property under ORB 311.207 to 311.215 to
provide for the assessment and taxation of
any property for which exemption was ter-
minated by the governing body or by a court,
in accordance with the finding of the gov-
erning body or the court as to the tax year
in which the exemption is first to be termi-
nated. The county assessor shall make such
valuation of the property as shall be neces-
sary to permit such correction of the rolls:
The owner may appeal any such valuation in
the same manner as provided for appeals un-
der ORS 311.207 to 311.215.
(3) Where there has been a failure to
comply with ORS 307.529, the property shall
become taxable beginning July 1 of the first
tax year following the date on which the
noncompliance first occurred; Any additional
taxes becoming due shall be payable without
interest if paid in the period prior to the 16th
day of the month next following the month
of correction. If not paid within such period,
the additional taxes shall be delinquent on
the date they would normally have become
delinquent if timely extended on the roll or
rolls in the year or years for which the cor-
rection was made. [1989 c.803 ~10; 1991 c.459 ~7;
1991 c.930 ~9J
Note: See note under 307.515.
307.535 Extension of deadline for
completion; exception to imposition of
additional taxes. Notwithstanding any pro-
vision of ORS 307.515 to 307.523:
(1) If the governing body finds that con-
struction of the housing unit otherwise enti-
tled to exemption under ORS 307.517 was not
completed by July 1, 2000, due to circum-
stances beyond the control of the owner, and
that the owner had been acting and could
reasonably be expected to act in good faith
and with due diligence, the governing body
may extend the deadline for completion of
construction for a period not to exceed 12
consecutive months.
(2) If property granted exemption under
ORS 307.515 to 307.523 is destroyed by fire
or act of God, or is otherwise no longer ca-
pable of owner-occupancy due to circum-
stances beyond the control of the owner, the
exemption shall cease but no additional taxes
.
.
Title 29
307.541
Page 121
g-~
" t
EXHIBIT'C
RESOLUTION NO. 93-15
.
1 A RE,$OLUTION ADOPTING STANDARDS AND GUIDELINES FOR PROCESSING APPLICATIONS FOR
NEW LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION.
WHEREAS, issues related to local housing needs have been given a high priority by the Mayor and
Council;
WHEREAS, the Oregon Legislature during its 1989 and 1991 session, adopted and revised House
Bill 2060, presently codified at ORS 307.515 through 307.537, to establish a procedure whereby cities
that adopt those provisions may implement a program for exempting newly constructed low-income
rental housing from ad valorem taxes for a period of twenty years;
WHEREAS, as an incentive to encourage construction of new low-income rental housing within
the city of Springfield, the Council has adopted those provisions, as codified at Sections 2-14-1 through
2-14-4 of the Springfield Code, 1965,;
WHEREAS, ORS 307.521 (3) requires that prior to processing any applications for exemptions
under the program that the City adopt standards and guidelines, which include policies to be complied-
with prior to granting approval of an application; and
WHEREAS, standards and guidelines have been promulgated to implement a program for
exempting newly constructed low-income rental housing from ad valorem taxes,
.
WHEREAS, these Standards and Guidelines, attached as Exhibit A and incorporated herein by
reference, should be approved and adopted as the process to be followed by the City Manager in
reviewing and making recommendations on applications for property tax exemption for new low-income
rental housing; and
NOW THEREFORE, BE IT RESOLVED AS FOLLOWS BY THE COMMON COUNCIL OF THE CITY
OF SPRINGFIELD:
1. That the Standards and Guidelines for Processing Applications for New Low-Income Renta:
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 applications.
ADOPTED by the Common Council of the City of Springfield by a vote of 4 in favor and 0
opposed this ~ day of April, 1993. -
· '-1dcuyJCc tLz
Eileen Stein; City Recorder
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Exhibit A
.
STANDARDS AND GUIDELINES FOR PROCESSING
APPLICATIONS FOR THE NEW LOW-INCOME RENTAL HOUSING
LOCAL PROPERTY TAX EXEMPTION UNDER ORS 307.515 TO ORS 307.537
Pursuant to the provisions of Ordinance No. 5667 of the City Council of the City of
Springfield, the City Manager shall be governed by the following rules in considering
applications and making recommendations for the new low-income rental housing local
property tax exemption. These standards and guidelines are adopted pursuant to ORS
307.521 (3).
ADMINISTRATIVE PROCESS
For purposes of these rules, the following words and phrases mean:
City Manager.
The City Manager of the City of Springfield, or his or her designee.
Low Income.
Income lower than that established for very low-income families as
defined by 42 U.S.C. Section 1437a(b){2) as amended before
December 1, 1984.
Low-Income Rental HousinQ.
Rental housing constructed after April 5, 1993, which
is occupied by low-income persons.
.
Elderly HousinQ.
This tax exemption program is available for elderly housing only. For
the purpose of this program, the owner must meet the requirements
of the Fair Housing Amendments Act of 1988, and regulations
promulgated thereunder, see Volume 54 Federal Register No. 13,
Sections 100.302, 100.303 and 100.304.
1. Statement of ProQram Purpose. The purpose of the new low-income rental housing
tax exemption program is to provide an incentive that will encourage const~uction
of new rental housing for low-income elderly persons.
2. EliQible Property. To be eligible for City property tax exemption hereunder:
2.1 The property must be offered for rent;
2.2 The property, or portion thereof subject to the property tax exemption; must
be occupied solely by elderly low-income persons;
2.3 The required rent payment must reflect the full value of the property tax
exemption;
.
2.4 The housing units on the property must be constructed after April 5, 1993;
Standards and Guidelines--l
C-rJ..
.
2.5
The property owner must agree to comply with the policies set forth in
Section 5 of these Standards and Guidelines;
2.6 The proposed development will 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;
2.7 The proposed development will not have an adverse effect on historic
structures unless criteria established in Article 30 of the Springfield
Development Code, 1986 are met and recommendations are made by the
Historical Commission and granted by the Planning Commission;
2.8 The proposed development will be otherwise consistent with provisions of
the Springfield Code, 1965 and adopted City regulations and policies; and
2.9 As an alternative to the criteria set forth in subsections 2.1, 2.2, 2.3, and
2.4 of this section, an application shall be approved if it meets the criteria in
subsections 2.5, 2.6, 2.7, and 2.8 of this section and all of the following
criteria:
2.9.1 If unoccupied, the property is offered for rental solely as a
residence for low-income persons;
2.9.2
If occupied, the property is occupied solely as a residence for
low-income persons;
.
2.9.3
The applicant's application was filed prior to July 1, 2000;
2.9.4
The property is owned or being purchased by a nonprofit
corporation organized in a manner that meets the criteria for a
public benefit corporation, as described under ORS 65.001 (31)
or for a religious corporation, as described under ORS
65.001 (33); and
2.9.5
The property is owned or being purchased by a nonproJit
corporation that 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.
3. Aoolication for Exemotion. Prior to December 1 of the calendar year immediately
preceding the first tax year for which the exemption is requested, or, if the property
is acquired after November 1, within 30 days of the date of acquisition, the
applicant shall submit to the City Manager, on a form provided by the City
Manager, an application for exemption, containing the following information:
.
3.1 A description of the property or portion thereof, for which the exemption is
requested;
Standards and Guidelines--2
t-3
3.2
A description of the purpose of the project and whether all or a portion of
the property will be used for that purpose;
.
3.3
A certification of the income levels of low-income occupants;
3.4 A description of how the tax exemption will benefit project occupants;
3.5 Evidence that, if unoccupied, the property is offered for rental solely as a
residence for elderly low-income persons;
3.6 Evidence that, if occupied, the property is occupied solely as a residence for
elderly low-income persons;
3.7 Evidence that the property is owned or being purchased by a nonprofit
corporation which meets the criteria for a public benefit corporation as
described in ORS 65.001(31), or a religious corporation, as described in ORS
65.001 (33);
3.8 Evidence that the nonprofit 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;
and
3.9 Any other information required by the City Manager.
.
The application shall be verified by oath or affirmation of the applicant and
submitted with an application and processing fee to be determined by the City
Council, which shall include therein the fee to be paid to the County Assessor by
the City as the County's agreed processing fee for those applications receiving
Council approval. The amount of the basic fee shall be prominently displayed on
the application, together with a statement that the applicant may be required to pay
other reasonable costs, including appraisal costs, if any are incurred by the City or
the County in processing the application. Any additional costs shall be paid to the
City by the applicant prior to the granting of any final approval. In the event an
application is denied, the portion of the fee reserved for the County Assessor will
be refunded to the applicant by the City. An application which does not contain all
the required information and is not accompanied by the required fee shall be'
returned to the applicant. Any application returned for these reasons shall be
deemed not to have been filed.
4.
Duration of Tax Exemption. Exemption from ad valorem taxes, excluding taxes on
land or any improvements not a part of the newly-constructed low-income rental
housing, shall be granted for no more than twenty successive years.
5.
Policies. In addition to the criteria set forth in Section 2-14-4 (2) and (3) of the
Springfield Code, 1965, and Section 2 above, the applicant must demonstrate
compliance with the following policies in order to be eligible for a property tax
exemption hereunder:
.
5.1
Rent Requlatory Aqreement. The owner must agree to execute and maintain
Standards and Guidelines--3
e-tf
.
5.2
5.3
5.4
.
in effect for the duration of the tax exemption period".a Rent Regulatory
Agreement in a form approved by the City, and which contains, but is not
limited to, provisions establishing regular reporting requirements and periodic
inspection periods, and demonstrates that the required rent payment reflects
the full value of the property tax exemption.
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 reasonable times, without prior notice, to
ensure that the premises are maintained in decent, safe, and sanitary
conditions for the occupants.
Elderly Housinq. This tax exemption program is available for elderly housing
only. For the purpose of this program, the owner must meet the
requirements of the Fair Housing Amendments Act of 1988, and regulations
promulgated thereunder, see Volume 54 Federal Register No. 13, Sections
100.302, 100.303 and 100.304.
Limitation of Tax Exemption. This tax exemption program will no longer be
available once an annual maximum cap of $100,000 in lost tax revenues is
reached as a result of this program, based upon the estimated real market
value of the property being exempted multiplied by the current tax rate of
the City. This is a cumulative total based upon ill! owners who are receiving
the exemption.
The following pertains to all applications received after the first exempted
application. At the time an application is received:
(a) City will determine the remaining exemption available to the program
by subtracting from $100,000 the estimated real market value of the
exempted property multiplied by the City's tax rate for the application
year.
(b) If the City determines it is able to exempt only a portion of a housing
project due to the limitation of the exemption program, the owner
may create two taxlots, one of which would be equivalent to the
remaining value of the exemption. In such an event, the owner will
be required to record a deed restriction stating the portion of property
exempted has two taxlot numbers for tax purposes only and that it
does not constitute a land division.
6. Recommendations 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
.
Make a written recommendation to Council in sufficient time to allow the
Council to act 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, S,ections 2-14-1
Standards and Guidelines--4
t-:;-
L
.^
through 2-14-4 of the Springfield Code, 1965, Council resolutions,
ordinances, and adopted policies, and applicable State statutes, that support
his or her recommendation.
7.
Amendments to Guidelines. The City Manager may, from time to time, propose
such revisions, deletions, or amendments to these Standards and Guidelines as he
or she may deem necessary or desirable for the efficient implementation of the low-
income rental housing local property tax exemption program, but no such revision,
deletion, or amendment shall be effective until approved by Council Resolution.
The foregoing Standards and Guidelines recommended to the City Council the 5th day of
Apri 1 , 1993.
Michael A. Kelly
City Manager
.
APPROVED by Resolution No. 93-15 of
the Springfield City Council on the
5th day of Apri 1 , 1993.
v0.~~
Eileen Stei
City Recorder
~0~~;~~.~ ~~
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.
Standards and Guidelines--5
e-{p
.
.
.
EXHIBIT D
RESOLUTION NO. 93-34
A RESOLUTION APPROVING THE SPRINGWOOD, INC. APPLICATION AND GRANTING A
PROPERTY TAX EXEMPTION THROUGH THE CITY OF SPRINGFIELD'S PROPERTY TAX
EXEMPTION FOR NEW LOW-INCOME ELDERLY RENTAL HOUSING PROGRAM (SECTIONS 2-14-1
THROUGH 2-14-4 OF THE SPRINGFIELD CODE, 1965)
WHEREAS, Springwood, Inc. proposes to construct 429 units of low-income elderly rental
housing units on property located at 29th and Main Street in Springfield;
WHEREAS, Springwood, Inc. has submitted an application to the City of Springfield's
Property Tax Exemption for New Low-InCome Elderly Rental Housing Program; and
WHEREAS, the City Manager has reviewed the application and completed a Report and
Recommendation, which is attached hereto as Exhibit A~'-;
WHEREAS, the City Manager finds that the Springwood, Inc. application, which is
attached hereto as Exhibit 8, satisfactorily meets the criteria as set forth in ORS 307.515 through
307.537. Sections 2-14-1 through 2-14-4 of the Springfield Code, 1965, and Standards and
Guidelines adopted by Resolution No. 93-15 for the City's Property Tax Exemption for New Low-
Income Elderly Rental Housing Program;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS BY THE COMMON COUNCIL OF THE
CITY OF SPRINGFIELD:
1. That the Springwood, Inc. application for 429 units of low-income elderly rental
housing units to be located at 29th and Main Street in Springfield be approved;
2. That in the event the Applicant fails to comply with the criteria and requirements as
set forth in ORS 307.515 through 307.537, Sections 2-14-1 through 2-14-4 of the Springfield
Code. 1965. Standards and Guidelines adopted by Resolution No. 93-15 for the City's Property
Tax Exemption for New Low-Income Elderly Rental Housing Program. and Report and
Recommendation of the City Manager (Exhibit Aj', the City Manager shall terminate the
exemption, following procedures established in Section 2-14-5 of the Springfield Code, 1965 and
appropriate ORS requirements;
3. That as a special condition imposed by the City Manager. the Applicant shall, within
ten days from the adoption of this resolution, sign a Statement in Support of the Application,
which is attached hereto as Exhibit C,:",I j
Springwood, Inc. Application
Attachment I - Page 1
!>-I
.
.
.
. PAGE 2
..
4. I That this resolution serves as the certification that the portion of property described
in Exhibit D: which is necessary for the low-income housing units, is exempt from ad valorem
taxation at the earliest possible date of July 1, 1994.
ADOPTED by the Common Council of the City of Springfield by a vote of ~ in favor and
.Q.. opposed this ~ day of) June , 1993.
&~~~
~~
Springwood, Inc. Application
Attachment I - Page 2
F.i:\;" [ E\'.'~TJ &.. APPROVED
~~~~_:~~\ j L('=-A~
L.-/.TE: """"'- \......n-<"- '2 '1 . \'t'l"3-
Or-FleE OF CITY ATTOR~JEY
C:TY C~ 2?i:;U\JGFICLD
D-;?
EXHIBIT A-I
.
REPORT AND RECOMMENDATION
of the
City Manager
Springwood, Inc. Application
For Property Tax Exemption for New Low-Income Elderly Rental Housing
'(Sections 2-14-1 through 2-14-4 of the Springfield Code, 1965)
The City Manager of the City of Springfield finds that:
1. Springwood, Inc. is a contract purchaser of real property located on 29th and Main
streets (tax lot numbers 17-02-31-00300 and 17-02-31-00700) in Springfield, Oregon,
as more particularly described in its application submitted pursuant to Subsection 2-14-
3(1) of the Springfield Code, 1965 for an exemption from ad valorem taxes under the
City's Property Tax Exemption For New Low-Income Elderly Rental Housing Program
(Sections 2-14-1 through 2-14-4 of the Springfield Code, 1965) which is attached
hereto as Exhibit B.
2. The Applicant has submitted all materials, documents and fees required by the City,
including, but not limited to:
2.1
Documentation that the property is being purchased by the Applicant
(see Schedule 2) ;
.
2.2
Documentation that the required rent reflects the full value of the
property tax exemption (see Schedule 6); and
2.3
Documentation that the property will be offered to or occupied solely by
low-income elderly persons (see Schedule 7);
3. The Applicant is in compliance with the policies set forth in the Standards and
Guidelines adopted by Resolution 93-15 of the City Council and has executed the
required Consent to Inspection of Premises (see Schedule 4), Rent Regulatory
Agreement (see Schedule 3), and Certification of Income Levels of Low-Income Elder1y
Occupants (see Schedule 5);
4. The proposed development will not cause displacement of low-income persons (see
application form);
5. The proposed development will not cause destruction of historic properties (see
application form);
6. The proposed development, for the purposes of this tax exemption program, is
otherwise consistent with provisions of the Springfield Code, 1965, and other adopted
City policies and regulations (see application form); and
.
Springwood, Inc. Application
Attachment I - Page 3
D-3
.
.';\
,-"
"..-
.
As required by the property tax exemption program, the proposed housing units will be
constructed after April 5, 1993, which is the date this program was implemented by
the City Council.
7.
Therefore, based upon the above findings, the proposed project is in conformance with most
criteria and requirements set forth in ORS 307.515 through 307.537, Sections 2-14-1 through 2-
14-4 of the Springfield Code, 1965, and Standards and Guidelines adopted by Resolution No. 93-
15 for the City's Property Tax Exemption for New Low-Income Elderly Rental Housing Program,
and
I recommend:
1. That the Springwood, Inc. application be approved; and
2. That a property tax exemption be granted to Springwood, Inc. for a maximum period of
twenty successive years, as long as the Applicant continues to meet the criteria and
requirements set forth in ORS 307.515 through 307.537, Sections 2-14-1 through 2-
14-4 of the Springfield Code, 1965, and Standards and Guidelines adopted by
Resolution No. 93-15 for the City's Property Tax Exemption for New Low-Income
Elderly Rental Housing Program.
Dated this ~ day of June, 1993.
Springwood, Inc. Application
Attachment I - Page 4
~~it~
City of Springfield
"/:)-f
APPLICATION
..
Property Tax Exemption for New Low-Income Elderly Rental Housing
(Sections.2-14-1 through 2-14-4 of the Springfield Code, 1965)
~ -S t\ "'\1Us~
r~f,~ec
.
City Application Fee of $_. Includes Lane County Assessor processing fee of$
which will be refunded to the applicant jf this application is not approved...
-
Notice: You may be subject toother reasonable costs, including appraisal costs if such costa
ale incurred by the City or County in processing this application, which must be paid prior to
tinal approval being granted.
INSTRUCTIONS:
All applicants must complete SectionA. Public benefit or religious corporations must also
attach Schedule 1 .
All applicants other than a public benefit or religious corporation must complete parts 1 to
11 of Section 8 and the Schedules required therein.
A public benefit or religious corporation must complete parts' 1 to 7 and parts 12to 13 of
Section 8 and the Schedules required therein.
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
SprinQWood Inc.
Address:
382 South 58th Street
Springfield, OR 97478
Telephone: 747-3373
Contact Person: Daniel J. Desler
.
Low-Income Rental Housing Property Tax
Exemption Program Application
Page 1
1-5
p--~'
.
.
.
. .
2. Is the applicant:
a)
Yes XX No
A public benefit corporation; or
"
b) -
Yes XX No
. A religious corporation?
" -
(Gee one 65.001 (31) 6f\c:f 65.001(33) Definitions on EHhibit ,".)
If "No"" was checked in both 2.a) and 2.b) above, complete parts 1 to 11 in Section
B,and appropriate Schedules. You may skip parts 12 to 13 of Section B. _
If "Yes" was checked in either 2.a) or 2.b) above, complete parts 1 to 7 and parts 12
to 13 in Section B. You may skip parts 8 to 11 of Section B.
Section" B--Property
1.
Property Owner.:
Pro'perty Address:
Sprinqwood, Inc.
29th and Main Street
Springfield, OR 97477
Assessor's Number: 170231-300 170231-700
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
XX The following described portion:
Approximately 35 acres of medium density residential
land rezoned, but not yet partitioned or sub-divided.
Legal de~cription enclosed.
Low-Income Rental Housing Property Tax
Exemption Program Application
Page 2
1-6
P-(p
.
.
.
3.
Description of purpose of project:
Rental Housing and support services for low income elderly.
All of the prope.rty for which exemption is sought will be used for this purpose,
or
xxx The following described portion of the property will be used for this purPose:
Approximately 35 acres. Legal Description enclosed.
-
_.
Project Construc.tion Dates:
. Commencement of Construction: 1993
Anticipated Completion: 1996
4.
xx Yes
The Rent Regulation Agreement attached as Schedule 3
and Consent to Inspection of Premises attached at
Schedule 4 have been executed and applicant agrees to
maintain the same in effect throughout the duration of the
tax exemption period.
No.
5.
Yes .-XX. No. Will the development cause displacement of low-income
persons? If "yes," explain mitigating circumstances that
should be considered by the City.
6.
Yes XX No. Will the development have an effect on historic
properties? If "yes", explain mitigating circumstances
that should be considered by the City.
7.
Yes XX No. Will the development have an effect on historic
properties? If "yes," provide information as to any permit
therefore or exception granted by the Springfield Planning
Commission.
Low-Income Rental Housing Property Tax
Exemption Program Application
1-7
Page 3
'.
D--'7
Public benefit or religious corporations skip parts 8 to 11, complete parts 12 to 13.
The portion of the property for which exemption is sought
is or will be oUered for rent.
xx
No.
Yes
8.
.
xx
No. The portion of the property.for which exemption is sought
- is or will be occupied solely by low-income persons, who
. also meet the age req"uiremept of the Fair Housing Act of
1988. If "yes," attach a Certification of Income L-etlels of
Low-Income OccupantS as Schedule 5.
9.
Yes
No. The required rent payment reflects, or will reflect the full
value of the property tax exemption. Attach
documentation as Schedule 6.
Yes
10.
xx
11. Describe how the tax exemption will benefit project occupants:.
The entire net amount of the tax exemption will be passed on
to reduce the rents, making them more affordable to very low
income residents.
Applicants not applying as a public benefit or religious corporation skip parts 12 to 14.
n/a Ves
The property is unoccupied, and the attached Schedule 7
documents that it will be offered for rental solely as a
residence for low-income residents.
12.
No.
.
n/a
The property is occupied, and the attached Schedule 7
documents that it is occupied solely as a residence for
low-income residents.
Yes
No.
n/a
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 low-income persons.
Yes
No.
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 20 successive years, commencing with the tax year 19~.
.
Low-Income Rental Housing Property Tax
Exemption Program Application
Page 4
1-8
D-~
.
.
.
I
. ,
If this application is submitted on behalf of a corporation, association, or .pa~riership,
the individual signing this application specifically represents! that he or she is authorized
to act on behalf of the corporation, association, or partnership.
Dated this d day of -?~ , 1913
-- LJ
o V\C IN C. (v6cJ)) IN G
J (Name of Applicant)
By:
.I/~(/:" '7
. ~ " /
d~_/_" ,?L,
(Aut-nonzed Representative of Applicant)
./
STATE OF Of-C4<.1--1A-.
'~
COUNTY OF . r/a."'i/l-(
ss.
On the '/3/;0ay of ,/h"".A4
r ,/ ,'f..F. I
named t/t?./JUiU: {/~,;-
voluntary act and deed.
. , 1 9 . '1 'S personally appeared befo"re ffire the within-
, and affirmed the foregoing to be . r'l,,/./
f 4' ~i ;;"
I ?j;J///:/A'/(lltit~A'
.~/ . /. .- --=>
Notary Public for ---1l7h 1/ d~A'-::).././...;.--
!./ :~
7/t2cr/qj
I ' /
My Commission Expires:
CITY OF SPRINGFIELD
225 Fifth Street
Springfield, Oregon 97477
Accepted this \8-K1\dayof ~-
Received By: lN~
,1912.
(Siqnature)
Print Name:
~. NC\ko.VVt~
~t~ ~{;-\-
Title:
Low-Income Rental Housing Property Tax
Exemption Program Application
Page 5
1-9
D-q
tY../ .',
lO, . ',,:'
'.' /
!}P'
9:131.277
~ve9
. ? tZ--\tf3
SCHEDULE 2
.
ASSIGNMENT AND CONVEYANCE BY OWNER OF VENDEE'S INTEREST
.IN LAND SALE CONTRACT
DATE:
July 1, 1991.
PARTIES:
3891JUL.03'91n07REC 2D-Q
3891JLl. 03' 91#f07PFUND UJ..Q
~~JUL.03'9HI07MT Ail> 2D..Q
Good Neighbor Care Centers, Inc., an Oregon
corporation ("ASSIGNOR")
and
Springwood, Inc. ("ASSIGNEE")
RECITALS:
.
A.' Assignor is the owner of the Vendee's interest in a Land
Sale Contract dated July 1, 1991, between Burkland, Inc., as Seller
("Contract Seller"), and Assignor as purchaser, a notice of which was
recorded on July3., 1991, Reel No. J70~~ , Reception No.
9j,31276 , official records of Lane County, Oregon ("Contract").
The property which is the subject of the Contract is described in
Exhibi t A ("Property").
B. Assignor desires to assign and convey its interest in the
Contract and the Property to Assignee and Assignee desires to acquire
such interests on the terms and conditions set forth below.
AGREEMENT:
1. Assignment and Conveyance. Assignor hereby assigns its
interest in the Contract and conveys its interest in the ~roperty to
Assignee.
2. Covenants. Assignor covenants as follows:
2.1 It is the owner of the vendee's interest in the
Contract;
2,2 It is not in default under the terms of the Contract;
2.3 The vendee's interest in the Contract is free of all
liens and encumbrances; and
2.4 The unpaid balance of the purchase price due under the
Contract is $285,000,00, with interest paid to July 1, 1991.
.
PAGE 1 - ASSIGNMENT AND COlfVEYANCE BY OWNER OF VENDEE'S INTEREST
1_ 1 0 IN LAND SALE CONTRACT
D-/O
.
.
.
..,
'91.31.277
3. Assiqnee's ASSUMption. Assignee hereby assumes the.
obligatJons of the vendee und~r The Contract and agrees to defend,
indemnify and hold Assignor harmless therefrom. -
4. Consideration. The consideration paid for this
assignment is $335,000.00, receipt of which is acknowledged by
Assignor.
5.. Attornev Fees. In the event any'suit, action, or any
other proceeding, is instituted to enforce any term of this
~ssignment and conveyance, the prevailing party shall recover from
the losing party reasonable attorney fees incurred in such action as
set by the trial court, including any bankruptcy court, and, in the
event of an appeal, as set by any appellate court.
6. Consent. .This assignment has been consented to by the
Contract Seller.
7. Representations. This instrument will not allow use of
the property described i.n this instrument in,violation of applicable
land use laws and regulations. Before signing or accepting this
instrument, the person acquiring fee title to the property should
chec]{ with the appropriate city or county planning department to
verify approved uses.
ASSIGNOR:
ASSIGNEE:
INC.
SPRING\^lOOD, INC.
By:
/'/'~
By: ~~.: '
.~_(Nam~:
. Its: ~
(Title)
Its: .
STATE OF OREGON
)
) ss.
)
County of LANE
The foregoing instrument was acknowledged before me this ~
day of June , 1991, by _ Daniel J. Des/er , who did sa..
that he/she is the President (Ti tIe) of Good Neighbor Care
Centers, Inc., an Oregon corporation, a~at said instrument Was
signed on behalf of said corporation b~a~t~ority of its board of
directors and acknowledged said instru ent to b its voluntary act
and deed.
e OFFICIAL SEAL
~. D. COFFMAN
~j NOTARY PUBlIC.QREGON
. COMMISSION NO. 005999
MY COMMISSION EXPIRES APR. 11. 1995
for Oregon
PAGE 2 - ASSIGNMENT AND CONVEYANCE BY OWNER OF VENDEE'S INTEREST
1-11 IN LAND SALE CONTRACT
b-tI
.
.
.
. . ,"
91.31277
STATE OF OREGON )
)
County of LANE )
My Commission Expir~s:4-11-95
The foregoing instrument was acknowledged before me this ~
day of June. , 1991, by Daniel J.DesJer ,. who did say
that he/she is the President (Title) of Springwood, Inc.,.and
that said instrument was signed on behalf of ~d rporation by
authority of its board of directors owl edged said instrument
to be its .voluntary act and deed.
~ . OFFICIAL SEAL
.' o. COFFMAN
~i NOTA?'Y PUBLlC-OREGON
.. - . (;OMMISSION Nq. 005999 !i
MY COMMISSiO~ EXPIRES APR. 11. 199.
CONSENT
for Oregon
Expires: 4-11-95
The Contract Seller hereby consents to the above assignment of
the vendee's interest in the Contract. How~ver; this consent shall
not be construed as a release of the Assignor's liability under the
Contract.
.!1. -.Ill N E.
DATED this~ day of July, 1991.
BURKLAND, INC., an Oregon corporation
By: .db--. ~~ A ~~ -J?
DONALD H. BURKLAND, President
1-12
PAGE 3 - ASSIGNMENT AND CONVEYANCE BY OWNER OF VENDEE'S INTEREST
IN LAND SALE CONTRACT
7;:>- / ;t
. \,
~.....-....
9:13:1277 ;. .l l
. /--::) -.
.. ..' I
EXHIBIT "A"
.; PARC'EL r:.
B~~inning at a point on the North line of the J. C. Carter
.. Ition land Claim No. 58, Township 17 South, Range 2 West of the
h_.lamette Meridian, 565~62 feet East of the_intersecetion of said
.Northline'with the .Easterly right of way 1ine- of the Southern
Pacific Company Mohawk Branch railroad, thence South 820 471 East
512.80 feet to the West line of that tract conveyed to William
Sawyer and Flo SawYer, husband and wife, by instrument recorded.
Mar.ch 4, 1947, Book 342, Page 614, Lane._ Coun ty Oregon 'Deed
. .~fecords; theI1ce..South. O.~ :.32.~. 30.... West. 1998.5:2. feet.. al.ong said.
West .line to the Northeast corner of that tract. conveyed to
Eastern Lane County Fire Patrol Association by instrument recorded
January 14, 1946, Book 308, Page 163, Lane County Oregon Deed
Records; thence North 890 44' West. 300.0 feet; thence South 00
29 f 30;r West 1016.4 feet. to the North right of way line of the
McKenzie Highway; thence along said North right of way line North
890 44' West 209.92 feet to a point 565.62 feet East of the
aforesaid East right of way line of the Southern Pacific Company;
thence North to the Point of Beginning, in Lane County, Oregon.
. -...
Excepting Therefrom that portion
Springfield for street purposes.
conveyed to - the City of
PARCEL II':
.
Beginning at the intersection of the East line of the railroad
riaht of way with the South line of the J. C. Carter Donation Land
C' to No. 58, Notif. No. 7485, in Township 17 South of Range 2
W~ ~ of the Wi1lamette Meridian, and running thence East on the
South line of said claim 8.57 chains, thence North par1a1lel with
the line of said railroad.46.70 chains more or less to the North
line of the claim; thence West along said North line 8.57 chains
to the East line of the railroad right of way; and thence South
along said line 46.70 chains to the Place of Beginning, being a
part of said Donation Land Claim No. 58 in Lane County, Oregon,
excepting therefrom a tract of 0.396 acres deeded to Lane County
for a road as described in that certain deed from E. K. Wheeler
and Sophia M. Wheeler to Lane County, Oregon, recorded Feb. 8,
1929, in Volume 162, Page 130 of La11e County Oregon Deed Records.;
Except therefrom the following: That certain tract of
property conveyed to Winlock Handle Co., a co-partnership, by
dated July 6, 1945, and recorded August 6, 1945, in the
Records of Lane County, Oregon, in Book 293, Page 606;
real
deed
Deed
Also except that certain tract
Cascade Lumber Terminal Inc., an
September 22, 1945, recorded
records in Book 297, Page 666;
of real property conveyed to
Oregon corporation, by deed dated
September 25, 1945, in said deed
Also except that certain tract of real property
Cascade Lumber Terminal Inc., an Oregon corporation,
.I?r ,ber 30, 1946, recorded January 9, 1947, in said
~L Jok 339, Page 178.
conveyed to
by deed dated
deed records,
1-13
f)-/3
l '
t\)'
10./ .
.
.
.
..
. ' ,
NOTICE OF,CONTRACT FOR SALE OF REAL PROPERTY
. . .
TAKE NOTICE THAT the reai property described in Exhibit A, aitach~d hereto and by this
reference made a p'art hereof as though fully set fonh herein, has been sold subject to the telms and
provisions of a Land Sale Contract.
The consideration for this sale is $335,000.
. . .-x:;~ t1
DATED thi~ day of ~a')\Q ,1991.'
SELLER:
38'91JUL.03~91007REC 15.JI
3891JUl.03'91>>07PFUND !O.as
3891JU...03~91tt07A&T FUND 2O.lJI
BURKLAND, INC.. an Oregon corporation -
By: LJ..... ---e./ # ~--L~ .R..
DONALD H. BURKLAND, President
PURCHASER:
GOOD NEIGHBOR CARE CENTERS, INC.. .
an Oregon corporation
By:
ItS:
SEND TAX STATEMENTS TO:
Good Neighbor Care Centers; Inc.
382-B South 58th St.
Springfield, OR 97478
AFfER RECORDING, RETURN TO:
Good Neighbor Care Centers. Inc.
382-B South 58th St
Springfield. OR 97478
STATE OF OREGON )
) SSe
Countyof ~'tM. )
." '.
.' ,:::.. =:,.. ..'" "'"
the;:for~)ng'4nstrument was acknowledged before me this Z-r.. day of ~
199C',by Q..Q~I:..J?;~ BURKLAND. who did say that he is the President of BURKLAND.
I~~:,'an. Oreg-an ~orpor~on, and that said instrument was signed on behalf of said corporarion by
ajJ~rity ot:i~ b~arp:O~directors and acknowledged said ins01Jment to be its voluntary act and
cf~.Q...'. ;~ U G ,-\ ,:~~ ~ \' --1 \. .' ~ .: .
\. '.;"~'.... .,.";,':,;-,,/ \. ~'l /'., /\ ~ ,I r.'-t'i^- i \1
'. _.",; {c""-;" 1'\:' ",..' '-....--. ~"v '- ~ ,~; I
.....,,'- e;- .~...... Notary Public for Oregon
.."........ My Commission Expires: II Z.y- iq4
STATE OF OREGON ) . .
) ss.
County of )
The foregoing instrument was acknowledged before me this _ day of ,
199], by . who did say rhat is rhe
of Good Neighbor Care Centers, Inc., an Oregon corporarion, and that said
instrument was signed on behalf of said corporation by authority of its board of directors arid
acknowledged said instrument to be its voluntary act and deed.
Notary Public for Oregon
My Commission Expires:
O&BURKLAND/GOOD NElGHBOR NOTICE, PAGE I of I
061791944
. @@[Pu
1-14
D-/'f
.
.
.
NOTICE OF CONTRACT FOR SALE OF REAL.P'ROPER~Y
TAKE NOTICE iliA T the real property described in Exhibit A. attached hereto and by this
reference made a part hereof as though fully set forth herein. has been sold subject to the terms and
provisions of a Land Sale Contract..
The consideration for this sale is $335,000.
DATED thLS2 7 ~ day of ill. (, ~ . 1991.
SELLER:
BURKLA:ND, INC.. an Oregon corporation
PURCHASER:
By:
DONALD H. BURKLA1'\TJ), President ,
\
NCl,
By:
Its:
.' AFfER RECORDING; RETURN TO:
Good Neighbor Care Centers, Inc;
382-B South 58th St.
Springfield, OR 97478
SEJID TAX ST A TE.\1ENTS TO:
Good Nei~hbor Care Centers, Inc~
382-B So~th 58th St.
Springfield. OR 97478
STATE OF OREGON .
)
)
)
ss.
County of
The foregoing instrument was acknowledged before me this _ day of ,
1991. by DONALD H. BURKLA:Nl), who did say that he is the President of BVRKLA:"iD.
INC.. an Oregon corporation, and that said ins01lrnent was signed on behalf of said corporation by
authority of itS board of directors and acknowledged said instrument to be itS voluntary act, and
deed.
STATE OF OREGON
Notary Public for Oregon
My Commission Expires:
County of LANE
)
)
)
ss.
The fore20in~ instrument was acknowle~efore me this 27thdavof June
1991. by DA~NIE~L J. DESLER (~ . who did say that he is th~
President of Good Neighbor Care C Inc.. . Oregon corporation. and that said
insuument was signed on behalf of said corp .on)/\iu ority of its board of directors and
acknowledged said instrument to be its volum a~tr
~
4-11-95
OFFICIAL SEAL
D. COFFMAN
NOTARY PUBlIC.OREGON
COMMISSION NO. 005999
MY COMMISSION EXPIRES APR. II, 1995
O6IBURJQA,'ID/GOOD NEIGHBOR NOTICE - PAGE 1 of 1
061791944
1-15
J;>- Is-'
.
.
.
PARTIES:
and
RECIT ALS:
. ,
RENT REGULATORY AGREEMENT
City of Springfie!d, a.Municipal Corporation
of the State of"Oregon
(City)
. Sprinqwood, Inc.
C/O GNCC
382 South. 58th Street
(Applicant)
Springfield, OR 97478
A. Pursuant to the provisions of Sections 2-14-1 through 2-14-4 of the Springfield
Code 1965, and the Standards and Guidelines approved by Resolution No. _
of the City Council, the City administers a program that provides an
exemption from ad valorem taxes for new low..income elderly rental housing.
B.
Applicant has submitted an application for property tax exemption for property
located at 29th and Main Street (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:
1.1 The total number of rental units on the Subject Property which
are occupied and unoccupied as of December 31 of the
preceding calendar year;
1.2 The income levels of the occupants of the rental units;
1.3 That unoccupied units are being offered for rental solely as a
residence for low-income persons;
Rent Regulatory Agreement--1
1-16
Schedule 3
D-/~
.
.
.
, .
1-17
1.4
That the required rental payment(s) reflect the full value of the
property tax exemption granted to Applicant for the Subject
Property; and
1.5 That the occupants of the rental units meet the age requirements
of the Fair Housing Amendments Act of 1988, as implemented
in Volume 54 Federal Register No. 13, Sections 100.302,
100.303 and 100.304.
2. Inspections. Applicant agrees that 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 thisAgreement. The parties may agree in
writing that inspections occur on specific dates, and absent such an agreement,
City may perform on specific dates, and absent such an agreement, City llJay
perform inspections upon five (51 days prior written notice to Applicant.
3. Documentation. Applicant agrees to provide to City upon ten (101 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 Agreemer.t shall be in writing, and
directed to City in care of Development Services Department, 225 Fifth Street.
Springfield, Oregon 97477, and to the Applicant at the address indicated
below.
5.
Effective Date. This Agreement shall become effective upon approval of the
Applicant's application for ad valorem property taxexemption 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 2-14-1 through 2-14-4 of the Springfield
Code, 1965, or the Standards and Guidelines adopted by
Resolution No. , or this Agreement; or
6.2.3 Comply with any conditions imposed in the Resolution approving
the tax exemption application.
Rent Regulatory Agreement--2
Schedule 3
))-/7
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 .2.2.- day of
Apri 1
, 19!1l.
Print Name: Daniel J. Desler
Title: President
Address: C/O GNCC 382 South 58th Stree
sprlngfleld, OR 9/41tl
.
Accepted this tz, dayof ~ Vl'\
,19~.
CITY OF SPRINGFIELD
L.~
By:
Print Name: L ~ ~().,~~
Title: ~~s+
.
Rent Regulatory Agreement--3
Schedule 3
1-18
D-/Cj
.
.
.
CONSENT TO INSPECTION OF PREMISES
The undersigned, as Applicant for an ~xemption from ad valorem taxes for th_e property
located at 29th and Main Street , hereby consents that upon approval of.
the application to which this is appended and occupancy of the low-income rental units.
authorized representatives of the City of Springfield may. for the duration of the tax
exemption period, inspect the above premises at reasonable times, and without prior notice.
to insure 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 1L day of April
, 19..9.L.
~ a'
By:
(Authorized Rep--resentative of Applicant)
Print Name: Daniel J. Desler
Title: President
Address: clO GNCC 382 South 58th Street
Springfield,OR 97478
Accepted this Z,V day of ~V\ \
, 19E2-.
CITY OF SPRINGFIELD
By: L.
Print Name: 1--. lJa~~
Tille: ~~?t
Consent to Inspection of Premises
Schedule 4
1-19
D-17
.~
.
.
,.
Certification of Income levels
of Low-Income. Elderly Occupants
1992
Family Income Guidelines
Springfield, ~Oregon
Household Size
Very Low income elderlv
Lower Income
1
2
3
4
5
6
7
8
$ 11,850
13,500
15,200 .
16,900
18,250
19,600
20,950
- 22,300
$ 18,950
21,650
24,350
27,050
29,200
31,350
33,550
35,700
I hereby certify that the rental units for which this exemption is sought are not occupied by,
nor' will they be offered for rental to persons whose incomes exceed the levels reflected above_
for Very Low Income persons. In addition, I hereby certify that the occupants of the rental
units meet the age requirements of the Fair Housing Amendments Act of 1988, as
implemented in Volume 54 Federal Register No. 13, Sections 100.302, 100.303 and
100.304.
Dated this ~ day of April
, 1993 .
Springwood, Inc.
(Name of Applicant)
By: (./"
(Authorized Representative of Applicant)
Print Name: Daniel J. Desler
Title: President
· See Definitions, Exhibit A
Certification of Income Levels
of Low-Income Occupants
Sc:hedule 5 .
1-20
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May 20, 1993
City of Springfield
225 Fifth Street
Springfield, OR 97477
C/O Lynn Nakamura
RE: Schedule #6
Dear Lynn
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I appreciated the opportunity to meet with you to discuss the elements of the
property tax exemption application. It is unfortunate that we are both plowing
new ground with this application and lack examples to follow.
We reviewed the ordinance page two, c, d, respectively. I trust that the following
addresses our unqualified commitment to "pass through" the full benefit of the
property tax exemption. However, as we discussed it is impossible at this point to
make absolute dollar commitments given the unknowns such as, the property tax
assessed value upon project completion, the dollar amount of credits, the time line
in building out the project by phases etc.
The following represents a common sense approach to the issue of tax exemption
"pass through" given that certain assumptions are made.
Assumptions:
1. Total number of units affected is 429.
2. A property tax limitation is established at $100,00 per annum for 20
years.
3. That 2Jl units will be one bedroom. (We are considering some 2
bedroom units in Phases I & II)
4. That 2Jl units will be occupied by a single qualifying elderly adult at
30% of 50% of medium income. (Very low income)
5. That actual costs of the project will parallel those used for estimating
purposes. I hesitate on this issue due to the uncertainty represented
by surprises like a $140,000 SDC expense for Willamalane Park
. District, which until a couple of months ago )Nas not recognized as a
project cost. In addition, we are completing a traffic study and
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747-3373 FAX: 747-0673
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wetland mitigation which given the outcome, will no doubt
substantially impact costs.
That income guidelines remain constant as represented on schedule
#5 1992 Family Income Guidelines; Springfield, Oregon. -
... Tax exemption pass through (based on assumptions)
1 . Maximum monthly rent
* Very low income @ 11,500 = $355.00 per month.
- 2.
Tax exemption applied
* $100,00 divided by 429 = $19.40 <19.40> per month
Total estimated monthly rent $335.60 per month.
Note:
The full benefit of the tax exemption will be passed through monthly
in the f~rm the form of rent reducti-ons on a pro-rata basis among
living units.
In closing, I trust that this explanation and example meets the intent and our
interpretation of the ordinance. It is my understanding that this schedule
completes the requirements for our application.
II
cc: Joe Leahy
AI Johnson
Susan Daluddung
DJD/gky
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Schedule (;
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June 15, 1993
Lynn Nakamura
C/O City of Springfield.
225 Fifth Street.
Springfield, OR 97477
RE: Tax Exemption Proforma Budget
Dear Lynn
I trust that this documenf together with my last letter in which I pointed out
significant contingency factors will provide you with a basis in support of our
request.
You will note that the $100,000 tax exemption is passed directly through to the
renter in the form of reduced rents. In addition, please note that even with the cap
of $100,000 the project will still be responsible for payment of $110,000 in
property taxes at an assumed rate of $15 per $1,000 in assessed valuation.
Thank you for your time and patience. Please call if you have any questions.
Sincerely
tBf?iM
President, Chairman of the Board
cc: AI Johnson
DJD/gky
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One Bedroom/One Bath(Net of Utilities)
Two Bedroom/One Bath(Net of Utilities)
Laundry Income
Other Income
Scheduled Gross Income
5% Vacancy Rate
Effective Gross Income
Property Taxes (15/1000 Mileage Rate)
Insurance
On-Site Management
Professional Management
Advertising
Garbage
Common Area Utilities
Water and Sewer
Repairs and Maintenance
Landscaping
Replacement Reserves
Turnover Costs (net)
Other
Total Operating Expenses
Net Operating Income (Before Debt Service)
Unit
Mix
251
146
397
SPRINGWOOD. INC.
Springfleld. OR
Estimated StabirlZed Operating Budget
1993 Base Xur
Revenues
Sq. Ft..
per Unit
630
798
No Tax Abatement
Monthly Annual
Rent Total
310 933,720
310 648,240
Operating Expenses
38,1 12
1,620,072
(81,004)
1,539,068
No Tax Abatement
Annual
Per Unit
529
135
151
151
15
80
90
215
335
30
150
13
20
1914
Annual Debt Service on 7,500.000 at 9 % for 30 years
Positive Cash Row
1-24
Annual
Total
210000
53595
60000
6??oo
6000
31760
35730
85355
132995
12000
59550
5000
7940
759925
779,143
7241 60
54,983
Tax Abatement
Monthly Annual
Rent Total
288 867,456
348 609,696
Tax Abatement
38, "2
1.515,264
(75,763)
1,439,501
Annual
Per Unit
277
135
151
151
15
80
90
215
335
30
150
13
20
1 662
Annual
Total
1 1 ??oo
53595
60000
60000
6000
31760
35730
85355
132995
12000
59550
5000
7940
659925.
779,576
724160
55,416
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EXHIBIT c-'
STATEMENT IN SUPPORT OF THE APPLICATION
I have submitted an application to the City of Springfield's Property Tax Exemption for New
Low-Income Elderly Rental Housing Program. I agree to be bound by the criteria and requirements
of the program as set forth in ORS 307.515 through 307.537, Sections 2-14-1 through 2-14-4 of
the Springfield Code, 1965, Standards and Guidelines adopted by Resolution No. 93-15 for the
City's Property Tax Exemption for New Low-Income Elderly Rental Housing Program, the
. Application for Property Tax Exemption for New Low-Income Elderly Rental Housing and all
Exhibits referenced therein and Report and Recommendations of the City Manager (Exhibit A).
In the event a separate tax lot is created or required by the Lane County Department of
Assessment and Taxation for the purpose of administering the exemption, I agree to record a
notice on the property indicating that such tax lot is solely created for the purpose of this
Property Tax Exemption Program, and does not constitute a land division.
In the event that I do not meet the criteria and requirements of the program as cited above, I
understand that termination of the exemption may occur.
As an inducement to the City of Springfield to provide this program benefit, I hereby waive
any irregularities or defects in the process by which Resolution No. resulted in the City of
Springfield approving this application and granting a property tax exemption.
Dated this
, 1993.
day of
(Name of Applicant)
By:
(Authorized Representative of Applicant)
Print Name:
Title:
Address:
Springwood, Inc. Application
Attachment I - Page 5
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EXHIBIT 0...1
LEGAL DESCRIPTION OF PRO~~r:
(A-fedil1l11 Densily Residentj;l/)
Beginro.ng at;1 point lhat is Hortll ()" 29' 30" East 430.82 leet and Soulb 89" 44'
East 775.54 leet .from tlle intersection pftlle Norlherly right-of-wa)' 01 McKel1zie
Highway and tllC E.'lsterly right-of-way oflhc Bra.nch Line ofSoutl](~rrl Pacific
Railroad; nm tllence HorUI 89044' lVest 209.92 feel; tllence North 0033' 28"
East ~89.18 feet; tllence SOUtll 890 52'20"J-Yest 310.91 leel: thence Nortl/0007'
40" West 1500.39 feel to the cenler ala drainage W;lY; thence along said dndnage
way Nortll 7r 20' EllSl 41.47 fect; t1lence SOUtll 72045' Easll05.85ICet; lhence
South 63050' Ensll08.90 lCel; el](~nce South 72030' Ellsl 92.36 leel; lhence
leaving said drainage wc-zy Norell 0032' 10" Easl355.31 leet to It point on the
Southerly rigl1l-of-wc'lY orSouthern Pc'lcific Rlu"Jroad; tllence along said right-of-
way South 82" 47' Easl 512.80 feet; tllence leaving said rigl1t-of-way South 0032'
30" lVeft 1998.52ICel; tllence North 89044' Wesl 300.00 leel; tbence SOUtll 0029'
39", West 585.58 feet lo tile Pl.7.ce of Beginning, in Springfield, Lane County,
Oregon. Sc-ud p:l./"cel contains 37.26 a.cres, more or less.
Tj~e li:bo ve descriptions \Vere prepllred from existing deed ,lI1d survey records and
may be subjecllo minor vllrilllions disclosed in n survey ollhe nbove properties.
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