HomeMy WebLinkAboutOrdinance 5667 02/01/1993
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ORDI~ANCE NO 5667
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ATTACHMENT IV
ORDINANCE NO. 5667
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AN ORDINANCE CONCERNING PROPERTY TAX EXEMPTION FOR NEW
LOW-INCOME HOUSING; ADDING ARTICLE XIV "TAX EXEMPTION FOR NEW
LOW-INCOME HOUSING", AND SECTIONS 2-14-1 THROUGH 2-14-4 TO THE
SPRINGFIELD CODE 1965 AND DECLARING AN EMERGENCY.
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 Exemption for New Low-Income Housinq
2-14-1 Intent. It is the intent of this Ordinance to give
effect to and adopt the provisions ORS 307.5~5 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:
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(1) citv Manager. '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 Propertv Tax Exemption -
Application.
(1) An Application for exemption from property taxes
hereunder for low-income rental housing units constructed after
t~ 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 shall 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;
(c) A certification of the income levels of
low-income occupants;
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(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; and
(f) Any other information required by the city
Manager.
(2) The information contained in the Application shall be
verified by oath or affirmation of the applicant.
(3) At the time the Application is filed, the applicant
shall submit the Application processing fee of $ In the
event that there is any fee charged by County for processing this
Application, applicant shall also be responsible for paYment of
that fee.
(4) An Application for exemption hereunder shall be filed
on or before December 1 of the calendar year immediately preceding
the first assessment year for which 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.
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(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.
2-14-4 Low-Income Rental Housing Property Tax Exemption -
Review. Approval or Denial 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 compliance with or mitigation of the
following criteria:
(a) The property is offered for rent;
(b) The property, or portion thereof subject to the
property tax exemption is occupied solely by
low-income persons;
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(c) The required rent paYment reflects the full value
of the property tax exemption;
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(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;
(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;
(g) The proposed development does not cause
destruction of historic structures unless
criteria established in Article 30.100 of the
Springfield Development Code, 1986, are met, 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 following 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;
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(c) The applicant's Application was filed prior to
July 1, 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 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
nonprofit 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.
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, (4) At the meeting at which the city Manager's
recommendation is considered, the Council shall adopt a resolution
approving the Application and granting the property tax exemption,
or adopt 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 housing unit;
(c) The legal description of the property or the
County Assessor's property account number;
(d) Any specific conditions upon which the approval
is based;
(e) The grounds for possible termination of the
exemption prior to the end of the exemption
period, or thereafter, and the effects of
termination.
(f) If only a portion of the property is approved, a
description of the portion approved; and
(g) 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 shall forward to the applicant a copy
of the resolution adopted by the Council approving an Application,
and, on or before April 1 following 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 thereafter, and the effects of
termination.
(7) A resolution denying an Application shall state the
reasons for denial, shall be forwarded to the applicant within ten
days of its adoption, and shall inform the applicant of the right
to appeal in the manner set forth in ORS 34.010 to 34.100.
2-14-5 Low-Income Rental Housinq Property Tax Exemption -
Termination.
(1) If after a resolution approving an Application for
exemption hereunder has been filed with the County Assessor the
City Manager finds that:
(a) Construction of the housing unit was not
completed within two years after the date the
Application was approved, or on or before January
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1, 2000, and no extensions or exceptions as
provided in subsection (4) hereof have been
granted; or,
(b)
The applicant has failed to comply with the
provisions of ORS 307.515 to 307.523, the
provisions of this Code, any provisions of the
standards and guidelines adopted by Council
resolution; or
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, 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, at a 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.
(c)
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(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 exemption 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 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 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 circumstances 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
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~ircumstances 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) In no event shall the low-income housing granted an
exemption by the Council be exempt from ad valorem taxation for
more than 20 successive years beginning the assessment year
commencing immediately following the calendar year in which the
Application was approved. The exemption shall not include the
land or any improvements thereon not a part of or necessary for
the low-income housing unit. The exemption shall be in addition
to any other exemption provided by law.
(6) Any exemption granted by the Council shall terminate
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 for the housing unit, or portion thereof, or
a declaration as defined 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."
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Section 2: / The Council requests that all other taxing
districts that levy taxes on property within the City of
Springfield agree to the policies of tax exemption set forth in
this Ordinance and notify the City Manager of the City of
Springfield of their agreement. When sufficient taxing districts
have notified the City Manager of their agreement to the policies
of tax exemption set forth herein so that, in combination with the
City, their combined tax levy equals 51 percent or more of the
total combined rate of taxation on property certified by the city
for limited assessment, the city Manager shall notify the Lane
County Tax Assessor that an exemption certified by the City shall
apply to the tax levy of all taxing districts in which the
property is located.
1/ In codifying this ordinance, section 2 should be footnoted and
set forth in full with the history at conclusion of article.
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ORDINANCE. NO. 5667conformity with subsection (2) or ORS 307.680. The council's
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action on an exemption shall not be a land use decision for
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purposes of administrative review.
2-13-9 Request for Aqreementand Notification from other Taxinq
Districts
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The council requests that all other taxing districts that levy
taxes on property within the city of springfield agree to the
policies of tax exemption set forth in this Ordinance and notify
the city Manager of the city of springfield of their agreement.
When sufficient taxing districts have notified the city Manager of
this agreement to the policies of tax exemption set forth herein
so that, in combination with the city, their combined tax levy
equals 51 percent or more of the total combined rate of taxation
on property certified by the City for limited assessment, the City
Manager shall notify the Lane County Tax Assessor that an
exemption certified by the city shall apply to the tax levy of all
taxing districts in which the property is located."
Section 2: ft is hereby fOlll1d and detennined that matters regarding a program
for tax exemption of low-income housing provided by tax exempt corporations are
matters affecting the public health, safety and welfare and that an emergency exis1
and that this Ordinance shall therefore take effect immediately upon its passage
by the City COlll1cil and approval by the Mayor.
ADOPTED by the Common Council of the City of Springfield
this 1ST day of FEBRUARY
, 1993~, by a vote of
4
for
and 2
against.
APPROVED by the Mayor of the City of Springfield this 1ST
day of FEBRUARY
, 1993.
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city Recorder
OP.DINllJ;C= - 7
/v/JJ/~
~yor
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ATTEST:
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ORDINANCE, NO. 5667
PAGE g Section 3.
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It is hereby found and determined that matters regarding property
tax exemption for new low-income hoUsing are matters affecting the public health,
safety and welfare and that an emergency exists and that this ordinance shall
therefore take effect immediately upon its passage by the City Council and
approval by the Mayor.
.--- ADOPTED by the Common Council of the City of Springfield,
this 1ST
4
FEBRUARY
day of
, 1993 by a vote of
for and
2 against.
APPROVED by the Mayor of the city of Springfield this ~
day of FEBRUARY
, 1993.
ATTEST:
'.fk~~
City Recorder
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