It is the intent of this code to give effect to and adopt the
provisions ORS 307.515 through ORS 307.537, as amended.
(Section 3.500 amended by Ordinance No. 6383, enacted June 25, 2018)
For purposes of sections
3.502 to
3.508, the following words mean:
City Manager.
The city manager of the city of Springfield, or the manager’s
designee.
Lender.
The provider of a loan secured by the recorded deed of trust or recorded mortgage made to finance the purchase, construction, or rehabilitation of a property used for low-income housing under the criteria listed in section
3.506 of this code.
Low-Income.
Income at or below 60 percent of the area median income as
determined by the Oregon Housing Stability Council based on information
from the United States Department of Housing and Urban Development.
(Section 3.502 amended by Ordinance No. 6383, enacted June 25, 2018)
(1) An application for exemption from property taxes hereunder for low-income rental housing units constructed after the effective date of sections
3.500 to
3.508 of this code shall be filed with the city manager, on a form provided by the city manager, which shall contain the following, if applicable:
(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;
(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;
(f) Evidence
that, if unoccupied, the property is offered for rental solely as
a residence for low-income persons, or is held for the purpose of
developing low-income rental housing;
(g) Evidence
that, if occupied, the property is occupied solely as a residence
for low-income persons;
(h) Evidence
that the property is owned or being purchased by a non-profit corporation
that meets the criteria for a public benefit corporation as described
in ORS 65.001(35), or a religious corporation as described in ORS
65.001(37);
(i) Evidence
that the non-profit 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, or for the provision of onsite child care
services for residents of the rental property;
(j) A
description of the plans for development of the property if the property
is being held for future low-income rental housing development; and
(k) 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. The application fee will be set by resolution of the
council, in consultation with the county assessor. If the application
is approved, the portion of the fee attributable to the county assessor’s
cost in administering the program shall be paid by the city to the
county assessor. If the application is denied, the city shall retain
that portion of the application fee attributable to its own administrative
costs and shall refund the portion attributable to the county assessor’s
administrative costs to the applicant.
(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, but no later than December 31 of that same
calendar year, in order to be considered for the following assessment
year.
(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.
(6) Notwithstanding the dates specified in ORS 307.517 and 307.518, property granted exemption pursuant to an application filed under sections
3.502 to
3.508 of this code before the date specified in ORS 307.523, shall continue to receive the exemption on the same terms, including duration, on which the exemption was granted.
(Section 3.504 amended by Ordinance No. 6383, enacted June 25, 2018)
(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) If
unoccupied, the property, or portion thereof subject to the property
tax exemption, is offered for rental solely as a residence for low-income
person, or is held for the purpose of developing low-income rental
housing;
(b) If
occupied, the property, or portion thereof subject to the property
tax exemption, is occupied solely as a residence by low-income persons;
(c) The
required rent payment reflects the full value of the property tax
exemption;
(d) The housing units on the property were constructed after the effective date of sections
3.500 to
3.508 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 section 3.3-900 of the Springfield
Development Code, are met, and destruction is granted by the historic
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) through
(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, or is held for the purpose of developing low-income
rental housing;
(b) If
occupied, the property is occupied solely as a residence for low-income
persons;
(c) The
applicant’s application was filed prior to the dates specified
in ORS 307.517 and 307.518;
(d) The
property is owned or being purchased by a non-profit 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 non-profit corporation that
expends no more than 10 percent of its annual income from residential
rentals for purposes other than acquisition, maintenance or repair
of residential rental property for low-income persons, or for the
provision of on-site child care services for residents of the rental
property.
(f) For
purposes of this subsection, a non-profit corporation that has only
a leasehold interest in property is considered to be a purchaser of
that property if the non-profit corporation is obligated under the
terms of the lease to pay the ad valorem taxes on the real and personal
property used in the rental activity on that property, or the rent
payable has been established to reflect the savings resulting from
the exemption from taxation.
(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 development;
(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) If
only a portion of the property is approved, a description of the portion
approved; and
(f) 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 10 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.
(Section 3.506 amended by Ordinance No. 6383, enacted June 25, 2018)
(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
or development of the exempt property differs from the construction
or development described in the application for exemption, or on or
before the dates specified in ORS 307.529, 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
(c) 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,
and every known lender, at the last known address of each such lender,
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.
(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 city manager shall notify
every known lender and shall allow each such lender not less than
30 days after the date the notice of the failure to appear and show
cause is mailed to cure any noncompliance or to provide assurance
adequate to the council that all noncompliance shall be remedied.
If the owner fails to appear and show cause why the exemption should
not be terminated and the lender fails to cure or give adequate assurance
any noncompliance will be cured, 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,
and the lender, at the lender’s last known 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 the dates specified in ORS
307.535, for completion of construction of the low-income rental housing
for a period not to exceed 12 consecutive months, if it finds the
failure to complete construction by the dates specified in ORS 307.535,
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 circumstances 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) 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.
NOTE: 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.
(Section 3.508 amended by Ordinance No. 6383, enacted June 25, 2018)