Loading...
HomeMy WebLinkAboutOrdinance 5667 02/01/1993 " ORDI~ANCE NO 5667 PAGE-. -1" ATTACHMENT IV ORDINANCE NO. 5667 . 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: . (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; . ORDINANCE - Page 1 ORDINANCE 5667 PAGE 2 . (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. . (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; . (c) The required rent paYment reflects the full value of the property tax exemption; ORDINANCE - Page 2 ORDINANCE 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; (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. . (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; . (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. ORDINANCE - Page 3 . . . ORDINANCE NO. 5667 PAGE 4 , (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 ORDINANCE - Page 4 . ORDINANCE NO.5667 PAGE 5 .' 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) . (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 ORDINANCE - Page 5 .' . . .DRDINANcE 5667 PAGE 6 ~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." 1 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. ORDINANCE - Page 6 ORDINANCE. NO. 5667conformity with subsection (2) or ORS 307.680. The council's PAGE" .7 action on an exemption shall not be a land use decision for . purposes of administrative review. 2-13-9 Request for Aqreementand Notification from other Taxinq Districts . 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. ...~~ city Recorder OP.DINllJ;C= - 7 /v/JJ/~ ~yor - . , f- ATTEST: , I ORDINANCE, NO. 5667 PAGE g Section 3. . . .' 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 ORDlNAl\JCE - 7