A.
Chapter 3.65 is adopted to carry out the provisions of ORS 307.841 to 307.867 as they pertain to the administration by the City of Milwaukie (City) of the Vertical Housing Development Zone Program described herein (program). The basic purpose of the program is to encourage construction or rehabilitation of eligible properties in order to augment the availability of suitable housing and to revitalize the designated development zone. This chapter sets forth relevant aspects of the program, including processes and criteria for the designation of vertical housing development zones (VHDZs), for the application and approval of certified projects, for the calculation of any applicable partial property tax exemptions, and for the monitoring and maintenance of properties as qualifying certified projects.
B.
This
chapter is not meant to interfere with the direct administration of
property tax assessments by the County Assessor and does not supersede
administrative rules of the Oregon Department of Revenue in OAR Chapter
150 pertaining to the valuation of property for purposes of property
tax assessments, including as adopted or amended in the future.
C.
Any
VHDZ within the city designated by the Housing and Community Services
Department for the State of Oregon prior to adoption of this chapter
shall sunset on July 1, 2022 unless extended by resolution of the
Milwaukie City Council. VHDZ applications received by July 1, 2022
shall have until December 31, 2022 to obtain a certified project approval
certificate issued by the City; otherwise the application will be
deemed inactive related to the VHDZ partial property tax exemption.
D.
The
program shall sunset on January 1, 2026 unless extended under the
authority of state law.
E.
The
termination of a VHDZ or the termination of the program under this
section does not affect the exemption from tax under ORS 307.864 of
any property of a vertical housing development project that was certified
prior to termination of the zone or the program and that continues
to qualify for the exemption at the time of the termination, up to
10 years of exemption.
(Ord. 2157 § 1, 2017)
As used in this chapter, unless the context indicates otherwise:
means a multi-story development within a VHDZ that the City
certifies as a vertical housing development project qualifying for
a vertical housing partial property tax exemption under this chapter
based on a proposal and description from a project applicant that
conforms to City requirements.
means the City of Milwaukie.
means the development of land, and the new construction of
improvements to land as further described in this chapter.
means the Clackamas County Assessor.
means the director of the Community Development Department
or someone within the City authorized to act on behalf of the Director
for purposes of the program.
means a situation in which a household is forced to move
from its current residence due to conditions that affect the residence
or the immediate surroundings of the residence and that:
means a local taxing district.
means the quotient that results from the division of the
total square footage of a certified project, excluding land and ancillary
improvements (as determined by the City) by the number of actual floors
of the nonancillary improvements of the project that are at least
500 square feet per floor unless the City, in its discretion, increases
the minimum square footage or otherwise qualifies the actual floors
of a project eligible to be used as a divisor in determining the equalized
floor quotient. Factors that the City may consider in determining
whether or not to increase the square footage minimum or to impose
other conditions for a qualifying divisor floor include, but are not
limited to, the following:
The proximity of the actual floor under consideration to other
floors in the project;
The extent of construction or rehabilitation on the actual floor
under consideration;
The use intended for the actual floor under consideration;
The availability of the actual floor under consideration for
use by prospective project tenants;
No partial property tax exemption will be awarded for a partial
equalized floor of residential housing and the maximum number of equalized
floors in a project is four. Accordingly, the City will determine
the number of residential equalized floors in a project available
for calculating a corresponding property tax exemption by capping
potential equalized floors at four and by rounding down to the next
complete equalized floor of residential housing. In other words, a
certified project will contain exactly 1, 2, 3, or 4 residential equalized
floors reflecting the number of complete equalized floors of residential
housing in a project up to the maximum four equalized floors;
Land, patios, porches, deck space, parking, and other ancillary
improvements normally will not be included by the City in the determination
of equalized floors. The City may include any or all of such space
in its determination of equalized floors if it concludes that such
space is critical for the viability of the project. Factors that the
City may consider in reaching such a conclusion include, but are not
limited to, the following:
The effect of such spaces upon the economic viability of the
project;
The degree to which such spaces are integral to the habitability
of residential housing in the project;
The benefit of such spaces with respect to the revitalization
of the community in which the project is located; and
The degree to which inclusion of such spaces modifies the calculation
of equalized floors.
means housing that is restricted to occupancy by persons
or families whose initial income at occupancy or initial certification
of the project is no greater than 80% of city's median family income.
Owners must provide evidence satisfactory to the City of such resident
eligibility as required by the City.
means median family income by household size for the city
as defined by the United States Department of Housing and Urban Development
as adjusted and published periodically.
means square footage within a certified project used other
than primarily for residential use or as common areas available primarily
for residential use by residents of the residential housing within
a certified project. Nonresidential areas may include, but are not
limited to, building features that are elements of construction including
corridors, elevators, stairways, lobbies, mechanical rooms, and community
rooms. Nonresidential areas may include units designated as live-work
spaces in accordance with City zoning requirements.
means an owner of property within a VHDZ, who applies in
a manner consistent with this chapter, to have any or all such property
approved by the City as a certified project.
means repair or replacement of improvements, including fixtures
or land developments, the cost of which equals at least 20% of the
real market value of the improvements or land developments being repaired
or replaced. In determining whether or not proposed or completed rehabilitation
is satisfactory or substantial, the City may consider factors including,
but not limited to:
The quality and adequacy of design, materials, and workmanship;
The quantity of rehabilitation in proportion to the total cost
of the project and between the area devoted to residential use and
area devoted to nonresidential use;
The distribution of rehabilitation throughout the project, including
as it relates to the habitability of residential areas, and particularly
low-income residential housing areas; and
The value of the improvements on a project. The value of the
improvements must be at least 20% of the real market value of the
entire project on the last certified assessment roll before the City,
in consideration of other factors, will deem rehabilitation to be
"substantial" in nature.
means regular, sustained occupancy of a residential unit
in the project by a person or family as the person's or family's primary
domicile, including residential units used primarily for transitional
housing purposes, but not units and related areas used primarily as:
Hotels, motels, hostels, rooming houses, bed and breakfast operations,
or other such temporary or transient accommodations; or
Nursing homes, hospital-type in-patient facilities or other
living arrangements, even of an enduring nature, where the character
of the environment is predominately care-oriented rather than solely
residential.
means the construction or rehabilitation of a multiple-story
building, or a group of buildings, including at least one multiple-story
building, so that a portion of the project may be dedicated to residential
uses and a portion of the project may be dedicated for use as nonresidential
areas.
means an area that has been and remains designated by the
City as a vertical housing development zone or an area that was officially
designated by the Housing and Community Services Department for the
State of Oregon as a vertical housing development zone and which remains
so designated.
(Ord. 2157 § 1, 2017)
The Director or designee is responsible for the implementation,
administration, and enforcement of this chapter. The Director may
adopt such policies and procedures as are necessary to efficiently
and effectively carry out that responsibility, consistent with the
provisions of this chapter.
(Ord. 2157 § 1, 2017)
A.
The
City may designate an area within the city as a VHDZ.
B.
Before
designating a VHDZ, the City must notify the local taxing districts
that have territory in the proposed VHDZ of the City's intention to
designate a VHDZ.
C.
A local
taxing district may elect not to participate in a VHDZ. A local taxing
district that elects not to participate may continue to impose taxes
on property otherwise exempt from ad valorem property tax under ORS
307.864.
D.
The
City must consider the potential for displacement of households within
a proposed VHDZ before designating the zone.
E.
The City may designate a VHDZ by resolution. The resolution may not be adopted sooner than 60 days after sending the notice required by subsection B of this section. The resolution shall:
1.
Contain
a description of the area sought to be designated as a VHDZ, including
proposed zone boundaries;
2.
Contain a statement attesting that the notification described in subsection B was sent by regular mail to each local taxing district listed pursuant to Section 3.65.040.A.1;
3.
Contain
a list of the local taxing districts that elected not to participate
in the VHDZ; and
4.
Address
the reasons that the City finds the designation of the zone will improve
housing affordability within the city and fulfill the purposes of
ORS 307.841 to 307.867.
F.
Once
designated, a VHDZ shall continue to exist indefinitely, except as
provided otherwise in this chapter.
G.
The
City may approve multiple VHDZs within its jurisdiction.
H.
The
boundaries of VHDZs may not overlap. A property may only be in one
VHDZ.
(Ord. 2157 § 1, 2017)
A.
B.
To elect
not to participate in a VHDZ, a district shall, within 45 days after
the date on which proper written notification is received by the district
from the City:
C.
The
City must prepare not later than 60 days after mailing notice to the
districts a statement identifying the districts (if any) that have
opted out of the VHDZ designation. The statement shall specifically
list each district opting out of the VHDZ designation, together with
a copy of the instrument(s) provided to the VHDZ applicant by each
such district.
E.
A district
that forms after the approval of a VHDZ may opt out of participating
in a VHDZ. To opt out, the district must provide:
1.
Written
notice post-marked to the County Assessor and the City on or before
July 1 of the first tax year in which it would impose a tax on the
project; and
2.
A
copy of a resolution or other appropriate official instrument duly
adopted and issued by the governing body of the district affirming
its decision to opt out of the VHDZ designation.
(Ord. 2157 § 1, 2017)
A.
The
City will send a copy of any designation of a VHDZ to the Department
of Revenue and to the County Assessor's office. The City will include
with the notification to the County Assessor:
(Ord. 2157 § 1, 2017)
A.
The
City may terminate all or part of the VHDZ at any time if the City
determines that the VHDZ fails to satisfy the criteria under this
chapter for the establishment or maintenance of a VHDZ. Any such termination
determination will not affect existing certified projects and is not
subject to administrative or judicial review. The City may reconsider
any such determination.
B.
The
City may approve a certified project after VHDZ termination if the
application for certification of the project was pending with the
City prior to the City terminating the VHDZ. However, the City may
consider the VHDZ termination in determining whether or not to approve
the application for a certified project.
C.
The
City will send notice of its termination of a VHDZ to any pending
applicant, the County Assessor, and owners of certified projects,
of whom the City is aware.
D.
Subsequent
VHDZs may include areas from a terminated VHDZ. A new VHDZ may be
designated, or an existing VHDZ expanded or reduced, so that there
is no discontinuance of a VHDZ designation for any areas where the
VHDZ designation is intended to endure.
(Ord. 2157 § 1, 2017)
A.
The
City may acquire or dispose of real property located in a VHDZ for
the purpose of developing projects. Property acquired by the City
within a VHDZ may be sold by the City at real market value or, if
it will prudently encourage the development of a project, at a lesser
value. This authority is in addition and without prejudice to any
authority by the City that otherwise exists under the laws of this
state or an act of this City to acquire or dispose of property.
B.
Development
of projects may be undertaken by the City, jointly or in partnership
with a private person or entity.
C.
Development
of projects also may be undertaken by private persons or entities
acting independently of the City ownership.
(Ord. 2157 § 1, 2017)
A.
A project
applicant may file an application for certification of a project by
completing the vertical housing project application form, as prescribed
by and available from the City, and by delivering it during normal
business hours or by mail to: City of Milwaukie Community Development
Department, Attn: Vertical Housing Program, 6101 SE Johnson Creek
Blvd, Milwaukie, Oregon 97206.
B.
Projects
must be described in terms of entire tax lots. Projects may not include
partial tax lots.
C.
The
project applicant must provide both a legible and scaled site plan
and a legal description of the land for the proposed project.
D.
To be
for "residential use" or for "nonresidential use" does not mean that
a building floor is actually being occupied accordingly, but rather
that it is at least intended and ready for such use and is not converted
or occupied for a contrary use.
E.
Low-income
residential housing floors or units must be set aside as such for
the entire tax year and occupied only by people who are income eligible
in order for the project to qualify for the low income vertical housing
exemptions on land.
F.
The
nonresidential use of a particular floor or floors may be satisfied
even if the entire floor is not devoted to that use.
G.
The
City will review applications upon their appropriate delivery subject
to, but not limited to:
1.
Applications
being complete and consistent with City requirements; and
2.
Delivery
to the City of an application processing fee, monitoring fee, and
any other related fees. In determining fees for each project applicant,
the City may consider factors including, but not limited to, known
and expected costs in processing the application, effecting appropriate
monitoring of the project and otherwise administering the program
with respect to the project. The fees authorized by this subsection
may be established by resolution of the City Council. Payment of fees
may be made by check or money order payable to the City and must be
submitted along with the project application or as otherwise required
by the City.
H.
For
new construction projects to qualify for certification, the application
must be delivered to the City before:
I.
For
rehabilitation projects to qualify for certification, the application
must be delivered to the City at any stage of the rehabilitation,
but not after rehabilitation work on the project is complete. The
City may provide a preliminary certification of the project pending
completion of the rehabilitation of the project. Notification of the
project's completion, together with appropriate documentation of the
actual costs of the rehabilitation and the real market value of the
prerehabilitated project, must be forwarded by the project applicant
to the City within 90 days of project completion. The City may certify
all or part of a rehabilitated project or of a project where the rehabilitation
is still in progress as a certified project.
J.
Project
applicants must provide the following information in a manner satisfactory
to the City:
1.
The
address and boundaries of the proposed project including the tax lot
numbers, a legible and scaled site plan of the proposed project, and
a legal description of the land involved in the project for which
a partial tax exemption is sought by the project applicant;
2.
A
description of the existing condition of the proposed project property;
3.
A
description of the proposed project including, but not limited to,
current architectural plans that include verifiable square footage
measurements, verified statements of rehabilitation costs, and designation
of the number of project floors;
4.
A
description of all nonresidential areas with related and total square
footages, and identification of all nonresidential uses;
5.
A
description of all residential uses and residential areas with related
and total residential square footages;
6.
A
description of the number and nature of low-income residential housing
units with related and total low-income residential housing square
footages;
7.
For
purposes of this section, square footage does not include areas used
for patios, porches, deck space, or parking, unless these areas are
demonstrated to the satisfaction of the City to be economically necessary
to the project or the City otherwise determines that it is appropriate
to include the areas in the square footage;
8.
Confirmation
that the project is entirely located in an established VHDZ;
9.
A
commitment from the project applicant, acceptable to the City, that
the project will be maintained and operated in a manner consistent
with the project application and the program for a time period acceptable
to the City and not less than the term of any related property tax
exemption;
10.
A calculation quantifying the various uses of the project in total
and by each equalized floor including allocations to residential uses,
the allocations to low-income residential housing uses, and the allocations
to nonresidential areas;
11.
Documentation establishing the costs of construction and rehabilitation
with respect to the project; and
12.
Such other information as the City, in its discretion, may require.
K.
The
complete project application must be submitted and received by the
City before the date that the certificate of occupancy is issued.
L.
The
City may request such other information from a project applicant and
undertake any investigation that it deems appropriate in processing
any project application or in the monitoring of a certified project.
By filing an application, a project applicant irrevocably agrees to
allow the City reasonable access to the project and to project-related
documents, including the right to enter onto and inspect the project
property and to copy any project-related documents.
M.
To qualify
to be a certified project, the rehabilitation of any existing improvement
must substantially alter and enhance the utility, condition, design,
or nature of the structure. In its application, the project applicant
must verify such substantial alteration and enhancement. The following
actions, by themselves, are not sufficient to satisfy this substantial
alteration and enhancement requirement irrespective of cost or implementation
throughout a project:
N.
Unless
an exception is granted by the City, projects "in progress" at the
time of application may include only costs incurred within six months
of the application date. Factors that the City may consider in determining
whether or not to grant an exception to the six month limitation on
costs include, but are not limited to, the following:
O.
For
applications filed before project completion, the City may provide
a conditional letter of prospective certification of the project pending
its completion. To obtain a final certification of the project, the
project applicant must provide timely notification to the City of
the project's completion, together with a copy of the certificate
of occupancy and other information as the City may require. A project
applicant must provide the notice and required documentation to the
City within 90 days of project completion which is typically the date
of the certificate of occupancy unless the City determines that another
date is more appropriate.
P.
If an
application is rejected for failure to meet City review requirements,
then:
1.
The
City will notify the project applicant that the application has been
rejected; and
2.
The
City, at its own discretion, may allow the resubmission of a rejected
application for project certification ("as is" or with appropriate
corrections or supplementations) or may reconsider a determination
by it to reject an application. Factors that the City may consider
in allowing a resubmission of a rejected application or the reconsideration
of a determination by it to reject an application include, but are
not limited to, the following:
a.
Whether or not rejection results in undue hardship to the project
applicant;
b.
The best interests of the community;
c.
The level of cooperation from the project applicant;
d.
The level and materiality of initial noncompliance by the project
applicant, and;
e.
Mitigation of any initial noncompliance by the project applicant.
3.
If
the City accepts for review a previously rejected application, it
may do so, at its sole discretion, on a prospective basis or based
upon the original date of filing. Factors that the City may consider
in determining the date to apply to a previously rejected application
include, but are not limited to, the following:
a.
Whether or not occupancy or readiness to occupy residential units
in the project has occurred since the original application;
b.
Whether or not undue hardship would result to the project applicant;
c.
The best interests of the community; and
d.
The level and materiality of noncompliance in the initial application.
(Ord. 2157 § 1, 2017)
A.
The
City will evaluate each accepted application to determine whether
or not to certify the proposed project. A project, to qualify for
City certification, must satisfy each of the following criteria:
1.
The
project must be entirely located within an approved VHDZ;
2.
The
project must include one or more equalized floors;
3.
The
project must be comprised of a multiple-story building, or a group
of buildings, including at least one multiple-story building, so that
a portion of the project is to be used for nonresidential uses and
a portion of the project is to be used for residential use;
4.
A
portion of the project must be committed, to the City's satisfaction,
for residential use and a portion of the project must be committed,
to the City's satisfaction, for use as non-residential use;
5.
The
commitment to nonresidential use must be accomplished as follows:
a.
At least 50% of the project's ground floor that fronts on the primary
public street must be committed to nonresidential use. If a project
has access to only one public street, the square footage of driveways,
loading docks, bike storage, garbage receptacles, and building entryways
shall be excluded before applying the 50% test;
b.
For the project's ground floor to be considered committed to nonresidential
use, all ground floor interior spaces that front on the primary public
street must be constructed to building code standards for commercial
use, are planned for commercial use and/or live-work use upon completion,
or both;
c.
The "primary public street" shall be designated by applying the City's
zoning code requirements or by mutual agreement between the applicant
and the City;
d.
For purposes of this rule, "public streets" include all publicly-owned
streets, but does not include alleys;
e.
For purposes of this rule, "live-work" spaces mean those areas within
a project combining space for a commercial or light manufacturing
business as allowed by City zoning code with a residential living
space for the owner of the business and space comprising that owner's
household. Any livework space is deemed to be committed for nonresidential
use under the program. The work portion of a live-work unit must have
direct access to street level entrances of the project.
6.
Each
phase of a phased development, whether vertical or horizontal, will
be treated as a separate project for application purposes;
7.
Each
project must be on its own independent legal tax lot(s);
8.
Construction
or rehabilitation must have been started on each building included
in the project, including but not limited to, additions that expand
or enlarge an existing building;
9.
The
project application must be complete and fully satisfactory to the
City;
10.
The project application must be received by the City on or before
the residential units are ready for occupancy (certificate of occupancy).
For rehabilitation not involving tenant displacement, the project
application must be filed before the rehabilitation work is complete;
11.
Calculation of equalized floors is adequately documented;
12.
Documentation, satisfactory to the City, which establishes the costs
of construction or rehabilitation of project land developments and
improvements, as applicable; and
13.
The project square footage calculations do not include parking, patio,
or porch areas unless these elements can be demonstrated by project
applicant to the satisfaction of the City that they are economically
necessary to the project and the City otherwise determines that it
is appropriate to grant an exception for the inclusion of any or all
of such areas in the project.
B.
Certified
projects with at least one equalized floor of low-income residential
housing may qualify for a partial property tax exemption with respect
to the land contained within the tax lot upon which the certified
project stands, but will not qualify for a partial property tax exemption
under the program for land adjacent to or surrounding the certified
project contained in separate tax lots. Excess or surplus land that
is not necessary for the project, as determined by the City, will
not be eligible for partial exemption; and
C.
Low-Income
residential housing units in the certified project must continue to
meet the income eligibility requirements for the definition of low-income
residential housing for the entire period for which the vertical housing
project is certified.
D.
All
new buildings or major rehabilitations as certified projects of the
City are required to meet a green building certification level and
associated energy use standards set within the Milwaukie Municipal
Code Title 19 based on the date of land use approval.
(Ord. 2157 § 1, 2017)
A.
The
City will endeavor to process each accepted application and make a
determination whether or not to approve such application, in whole
or in part, within 60 days of when the accepted application is received
by the City.
B.
The
determination of the City to certify or deny certification is a discretionary
determination. The determination is final and is not subject to judicial
or administrative review.
D.
The
owner of a certified project must execute and record a project use
agreement, including restrictive covenants running with the land and
equitable servitudes, satisfactory to the City in the Clackamas County
records. Recordation of such instruments satisfactory to the City
constitutes a condition precedent to the approval of the certified
project taking legal effect. The City may void any certified project
approval for failure to timely record and provide the City with a
copy of any such instruments. The owner shall be responsible for the
cost of recording and providing satisfactory evidence to the City
that such instruments have been properly recorded.
E.
If the
application is denied, the City will send written notice of the denial
to the project applicant. At its option, the City may allow reapplication
by the project applicant consistent with Section 3.65.080.P.
F.
Certification
by the City of a project may be partial in scope. The City's letter
of approval will identify what portions of the property and improvements
included in the project application constitute the certified project.
G.
The
letter of approval from the City also may include such information
and instructions as the City deems appropriate.
(Ord. 2157 § 1, 2017)
A.
A monitoring
fee shall be paid by the project applicant to the City at the time
of project application, or as otherwise directed by the City, to cover
the City's actual and anticipated costs of monitoring and otherwise
addressing compliance by the certified project with program requirements,
including, without limitation, ORS 307.841 to 307.861 and other applicable
law. The City may consider factors, including, but not limited to,
the following in determining the amount of this monitoring fee:
1.
The
size of the project;
2.
The
number of residential housing units;
3.
The
amount of commercial space, including any live-work units;
4.
Project
uses;
5.
Project
location;
6.
The
duration and complexity of compliance requirements;
7.
The
level and amount of staff or other services involved;
8.
The
use of supplies, equipment or fuel; and
9.
The
number of separate sites and/or buildings.
B.
The City may condition its approval of a certified project upon payment by project applicant of the applicable fee described above in subsection A. The City may void or terminate the certification of all or a portion of a certified project if such fees, or any part thereof, are not timely paid.
C.
Modifications
to or transfers of ownership of a certified project must receive prior
written approval from the City. The City will not unreasonably withhold
its approval of such modifications to or transfers of ownership. The
City may void or terminate the certification of all or a portion of
a certified project if modifications to or transfers of ownership
are made without its prior written approval except where such modifications
or transfers occur by operation of law following death or divorce.
D.
If there
are proposed or actual modifications to or transfers of ownership
of the certified project, the certified project owner shall notify
both the County Assessor and the City of the new owner's name, contact
person, mailing address, and phone number within 30 days of the change.
E.
The
City may require the certified project owner to pay an administrative
fee to cover the City's actual and anticipated costs of reviewing
and processing such modification or transfer including, without limitation,
effecting the legal review, amendment, execution, or recording of
related documents.
F.
The City may condition its approval of a modification to or transfer of ownership in a certified project upon payment by the certified project owner of the administrative fee described in subsection E of this section. The City may void or terminate the certification of all or a portion of a certified project if such an administrative fee, or any part thereof, is not timely paid.
(Ord. 2157 § 1, 2017)
A.
The
City may monitor and investigate certified projects for compliance
with program requirements and other applicable law as it deems appropriate.
By making application for approval of a certified project, project
applicants irrevocably agree and give their consent that the City
may enter onto the premises of and inspect all portions of the project
as well as review and copy project documents in the course of its
monitoring and investigatory actions. Project applicants shall prepare
an annual report to the City on the number of residential housing
units; number of low-income residential housing units, amount of commercial
space, including live-work units; and building energy usage. Project
applicants further agree to cooperate fully with such City monitoring
and investigatory actions.
B.
The
City may undertake any remedial action that it determines to be necessary
or appropriate to enforce City interests or program requirements including,
without limitation, commitments provided by project applicants in
the final application and certification. Remedial actions may include,
but are not limited to:
1.
The
requesting of project documentation, including, but not limited to,
current rents on an annual basis and lease agreements with redacted
personal information;
2.
The
issuance of orders and directives with respect to the project or otherwise;
3.
The
initiation and prosecution of claims or causes of action, whether
by administrative hearing, civil action or otherwise (including, without
limitation, actions for specific performance, appointment of a receiver
for the certified project, injunction, temporary restraining order,
recovery of damages, collection of fees, etc.); and
4.
The
decertification of all or a portion of a certified project.
C.
Prior
to decertifying all or part of a certified project and directing the
County Assessor to disqualify all or part of the project for partial
property tax exemption treatment, the City shall issue a decertification
notice to the certified project owner identifying relevant factors
among the following:
1.
The
property decertified from the project;
2.
The
number of equalized floors that have ceased qualifying as residential
housing for purposes of the program;
3.
The
number of equalized floors that have ceased qualifying as low-income
residential housing for purposes of the program;
4.
The
remaining number of equalized floors of residential housing in the
project and a description of the property of each remaining equalized
floor;
5.
The
remaining number of equalized floors of low-income residential housing
in the project and a description of the property of each remaining
equalized floor of low-income residential housing;
6.
If
the project no longer includes commercial space consistent with the
intent of the program;
7.
If
the project fails to meet the green building certification level outlined
in the Milwaukie Municipal Code Title 19; and
8.
Such
other information as the City may determine to provide.
D.
Prior
to issuance of a notice of decertification, the City will provide
the certified project owner with notice of an opportunity to correct
first-time program noncompliance within a reasonable amount of time
as determined by the City. The City also may elect to provide the
certified project owner with notice of an opportunity to correct repeat
program noncompliance within a reasonable amount of time as determined
by the City. In deciding whether or not to provide the certified project
owner with notice of an opportunity to correct repeat program noncompliance
and in determining how much time to provide the certified project
owner to correct any noticed program noncompliance, the City may consider
factors including, but not limited to:
1.
The
severity of the noncompliance;
2.
The
impact of noncompliance upon project tenants and patrons;
3.
The
public interest in appropriate and affordable housing;
4.
The
public interest in the revitalization of relevant communities;
5.
The
cost and time reasonably necessary to correct program noncompliance;
and
6.
The
past history of compliance and noncompliance by the project owner.
E.
For
those instances where the City has elected to provide notice to a
certified project owner of its noncompliance, if the City determines
that the certified project owner has failed to correct any noticed
program noncompliance within the time allowed by the City in its notice,
the City may issue the notice of decertification identified above
and direct the County Assessor to disqualify all or a portion of the
project from property tax exemption under the program. The City also
may issue a notice of decertification and direct the County Assessor
to disqualify all or a portion of a project from property tax exemption
under the program with respect to program noncompliance for which
it determines not to provide prior notice and an opportunity for non-compliance
correction.
F.
The effective date of a decertification is the effective date of same provided in the notice of decertification identified above in subsection C. The effective date of a decertification may be retroactive from the date of the actual notice of decertification only to the commencement of the noncompliance for which the decertification is issued as determined by the City. In determining whether or not to make the decertification retroactive, the City may consider factors including, but not limited to those identified above in subsection D, the intentional nature of the noncompliance, and when the owner or its agents became aware or reasonably should have become aware of the noncompliance.
(Ord. 2157 § 1, 2017)
A.
In order
to receive a partial property tax exemption under this chapter, the
certified project owner, the project applicant or other person responsible
for the payment of property taxes on the certified project must notify
the County Assessor that the project has been approved by the City
as a certified project and qualifies for a partial property tax exemption.
B.
The notification described in subsection A of this section must be delivered to the County Assessor in writing on or before April 1 preceding the first tax year for which the partial property tax exemption is sought.
C.
Except as modified by subsections D and E of this section, the exemption applies to the construction or rehabilitation of real property improvements associated with the certified project or the inclusion of affordable housing on the certified project, in each of the tax years for which the exemption is available, including, but not limited to, land development.
D.
The
property exemption rate equals 20% multiplied by the number of fully
equalized floors (among all associated buildings exempt in that year),
up to but not exceeding four such equalized floors, that are:
1.
For
residential use; and
2.
Constructed
or rehabilitated as part of the vertical housing development project.
For purposes of calculating the partial property exemption, the equalized
floor quotient is rounded down to whole numbers reflecting only fully
equalized floors up to a maximum of four such equalized floors.
E.
The
partial property tax exemption on a certified project is available
for 10 consecutive tax years beginning with the first tax year in
which, as of the assessment date, the project is occupied or ready
for occupancy following its approval by the City as a certified project.
F.
If during
the period of partial tax exemption, any part of a project dedicated
for residential use is converted to or used as nonresidential area,
the County Assessor and the City shall be notified by the project
owner of such change. Similarly, the County Assessor and the City
shall be notified in writing by the project owner if any part of a
project dedicated to low-income residential housing is converted to
other purposes or otherwise used in a manner that does not comply
with low-income residential housing requirements.
G.
In order
to receive partial property tax exemption with respect to a certified
project, the certified project owner shall apply to the County Assessor.
Upon written application for partial exemption to the County Assessor,
the certified project owner will provide the County Assessor:
1.
A
letter specifically requesting the partial tax exemption in accordance
with the certified project approval certification;
2.
A
copy of the final project application for certification;
3.
A
copy of the certified project approval certificate issued by the City;
4.
A
copy of the certificate(s) of occupancy for the entire certified project;
and
5.
Such
fee(s), if any, as the County Assessor may require.
H.
The
certificate of occupancy or temporary certificate of occupancy must
be dated prior to January 1 of the assessment year for which the exemption
is requested.
I.
The
written application for exemption must be made to the County Assessor
on or before April 1 of the assessment year for which the exemption
is sought and the exemption will be effective for the first year for
which the partial property tax exemption is available and for the
next nine consecutive tax years.
J.
If all
or a portion of a certified project is decertified by the City, that
portion of the certified project shall be disqualified from partial
property tax exemption as set forth in the notice of decertification.
(Ord. 2157 § 1, 2017)
The City may waive or modify any requirements of this chapter
unless such waiver or modification would violate applicable federal
or state statutes or regulations.
(Ord. 2157 § 1, 2017)
