HomeMy WebLinkAboutOrdinance 5668 02/01/1993
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ORDINANCE NO. 5668 GENERAL
ATTACHMENT IV
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AN ORDINANCE CONCERNING ESTABLISHING A PROGRAM FOR TAX
EXEMPTION OF LOW-INCOME HOUSING PROVIDED BY TAX EXEMPT
CORPORATIONS; ADDING ARTICLE XIII "LOW INCOME HOUSING TAX
EXEMPTION", AND SECTIONS 2-13-1 THROUGH 2-13-8 TO
THE SPRINGFIELD CODE, 1965
AND DECLARING AN EMERGENCY
THE CITY OF SPRINGFIELD DOES ORDAIN AS FOLLOWS:
Section I: There is hereby added to the Springfield Code 1965 a new
Article XIII, and Sections 2-13-1 through 2-13-8 of said
Article and reading as follows:
"Article XIII
Tax Exemption for Low-Income Housinq: Tax Exempt
Corporations
2-13-1 Intent. It is the intent of this Ordinance to give
effect to the provisions of ORS 307.241 through ORS 307.245 and
"Non Profit Corporation Low-Income Housing" codified after
307.245, page 29-81, Volume 6, ORS 1989.
2-13-2 Definitions.
For purposes of Sections 2-13-3 to 2-13-9 of this code, the
following words and phrases mean:
(1) city Manaqer. The City Manager of the City of Springfield,
or the manager's designee.
(2) Eliqible Corporation. A corporation which is exempt from
income taxes under 26 U.S.C. 501(c) (3) or (4) as amended before
December 1. 1984, and which demonstrates that upon liquidation,
the assets of the corporation are required to be applied first in
paYment of all outstanding obligations, and the balance remaining,
in cash and kind, to be distributed to corporations exempt from
taxation and operated exclusively for religious, charitable,
scientific, literary or educational purposes or to the State of
Oregon.
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(3) Eliqible Property. Property within the limits of the City of
Springfield which is: owned by an eligible corporation; actually
and exclusively used for the purposes described in 26 U.S.C. 501
(c) (3) or (4); and, occupied by low income persons. For the
purposes of this section property will be deemed to be occupied by
low income persons if it is made available and reserved
exclusively for low income persons and has been occupied by a low
income tenant within the last six months. Only that portion of
the property occupied by low income persons shall be eligible
property.
(4) 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.
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(5) Owner or Owned. The owner or purchaser of property for which
an exemption is sought. For purposes of this section a
corporation which has only a leasehold interest in property is
deemed to be a purchaser of that property if:
(a) The corporation is obligated under the terms
of the lease to pay the ad valorem taxes on the
real and personal property used to provide low
income housing; or
(b) The rent payable by the corporation has been
established to reflect the savings resulting from
the exemption from taxation.
2-13-3 Low Income Housinq Tax Exemption - Application
for Exemption.
. (1) An eligible corporation seeking tax exemption for eligible
property shall submit an application for each assessment year the
corporation seeks the exemption on a form provided by the City
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Manager together with the paYment of a $
processing fee.
. 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. The application shall contain the
following information:
(a) The applicant's name, address, and telephone number;
(b) The assessor's property account number for each parcel
of eligible property for which application is being made;
(c) The number of units and the exempted amount of each
parcel which is in part eligible property, and the portion
of the parcel which will be eligible property;
(d) A description of the property for which the exemption
is requested;
(e) A description of the charitable purposes of the
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project and whether all or a portion of the property is
being used for that purpose;
(f) A certification of income levels of low income
occupants and a declaration that the income levels of all
occupants of the property for which the exemption is being
applied, at the time of the application of within 30 days
of the filing of the application are 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;
(g) A description of how the tax exemption will
benefit project residents;
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(h) A declaration that the corporation is an eligible
corporation; and
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(i) Such other information as requested by the city
. Manager.
(2) The applicant shall verify the information in the application
by oath or affirmation.
(3) An application which does not contain all the information
required by this section and not accompanied by paYment of the
proper fees shall be returned. Any application returned for these
reasons shall be deemed not to have been filed.
(4) Except as provided in ORS 311.410(3), an application must be
filed on or before March 1 of the assessment year for which the
exemption is to be applied.
2-13-4 Low Income Housinq Property Tax Exemption - Review of
Application.
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(1) Applications for the low income housing property tax
exemption shall be filed with the City Manager.
(2) The City Manager shall process each application and the City
Manager shall make a written recommendation to the Council in
sufficient time to allow the Council to act within 30 days of the
filing of the application.
(3) Upon receipt of the city Manager's written recommendation,
the Council shall consider the application. At that meeting the
Council shall determine if the applicant qualifies for the
exemption. If the Council allows the exemption, the Council shall
adopt a resolution approving the application, which contains
findings on the approval criteria and certifies to the Lane county
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Tax Assessor that all or a portion of the property for which
application was made shall be exempt from the ad valorem property
tax levy of the City of Springfield.
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2-13":"5 Lew Income Housinq Property Tax Exemption - Annual
Application Renewal.
(1) Applicants for property tax exemption under section 2.912 of
this code must apply each year no later than March 1 in order to
be qualified for property tax exemption for the following tax
year.
(2) Applicants for property tax exemption under Section 2-13-3 of
this code shall apply and may be eligible for property tax
exemptions for assessment years beginning on or after January 1,
1991, but no later than January 1, 1994.
2-13-6 Low Income Housinq Property Tax Exemption - Requlatory
Power.
The City Manager may issue rules necessary for the implementation
of Section 2~13-1 to 2-13-8 by following the process set out in
Section 3.012 of this Code.
2-13-7
Low Income Housinq Property Tax Exemption - Assessment
Exemption.
(1) Property for which an application for a property tax
exemption has been approved under the provisions of Section 2-13-1
to 2-13-8 shall be exempt from ad valorem taxation for one
assessment year beginning on or after January 1 of the year
immediately following the calendar year in which construction is
completed, determined by that stage in the construction process
when, pursuant to ORS 307.330, the property would have gone on the
tax rolls in the absence of the exemption. The exemption provided
for herein shall be in addition to any other exemption provided by
law.
(2) Applications for property tax exemption under Section 2-13-~
shall apply to and may be approved for assessment years beginning
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n9 later than January 1, 1994.
. 2-13-8 Low Income Housinq Property Tax Exemption - Termination.
(1) If, after a certificate of qualification approving the
exemption has been filed with the County Assessor, the City
Manager finds that non-compliance has occurred or that any
provision of sections 2-13-1 to 2-13-8 is not being complied with,
the City Manager shall give notice in writing to the owner, mailed
to the owner's last known address, of the proposed termination of
the exemption. The notice shall state the reasons for the
proposed termination of exemption and require the owner to appear
before the Council to show cause at a specified time, not more
than 20 days after mailing of the notice, why the exemption should
not be terminated.
(2) If the owner does not appear or if the owner appears and
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fails to show cause why the exemption should not be terminated,
the exemption shall be terminated. A copy of the termination
shall be filed with the County Assessor and a copy sent to the
owner at the owner's last known address, within ten days after its
adoption.
(3) If the Council finds that the non-compliance was due to
circumstances 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 Council may continue the
exemption or some portion for the duration of the current
application.
(4) All review of Council action in denying, approving or
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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
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Section 3.
It is hereby fOlll1d 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 Counc1.' I of th C ' t f . .
e 1. y 0 Spr1.ngf1.eld,
this 1ST
day of FEBRUARY
for and 1
against.
, 1993 by a vote of ~
APPROVED by the Mayor of the City of Springfield this 1ST
day of FEBRUARY
, 1993.
ATTEST:
~' ~
City ~er
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ORDINAl\JCE - 7
/)::?~A~2Ii
Mayor