Housing Tax Exemptions

1. Housing Tax Exemptions Options for the Tillamook County Housing Commission Presented by Kari Fleisher, At large member

2. Housing Exemption Programs There are many exemption programs that address housing: • Multi-Unit Housing – Temporary bill location under Chapter 307. Former bill approved in 2017* • Multi-Unit Housing – Current bill ORS 307.600-650* • Single-Unit Housing – ORS 307.651-705** • Vertical Housing – ORS 307.841 • Non-Profit Homes for the Elderly – 307.370 • Agriculture Workforce Housing/Labor Camps – 307.480 • Land Held by Non-Profits for building homes for Low Income – 307.513 • Low Income Rental Housing – ORS 307.515* • Non-Profit Low Income Rental Housing – ORS 307.540* • Property of a Housing Authority – ORS 307.092 • Charitable 307.130 or Religious Exemption 307.140

3. Housing Exemptions - Continued • Each tax exemption program was created through the legislative process and each have their own unique requirements. • Please reference: Oregon Revised Statues: Chapter 307 • Oregon Revised Statutes: • https://www.oregonlegislature.gov/bills_laws/ors/ors307.html • Oregon Administrative Rules: • https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=421

4. 2017 Legislative Concept – Multi-Unit Housing • Basics: • Newly built or rehabilitated (only eligible once per property) that rents to people at or below 120 % of area medium income at monthly rates that are affordable to such households • Requires 51% of local taxing district approval via adoption of an ordinance • Can be at county or city level (governing body) • Tax exemption can be granted up to a maximum 10 years • Application fee to cover administration costs for processing • Requires application to governing body by March 1 prior to the beginning of the tax year (July 1) – allows for late filing • The governing body reviews application for meeting program requirements and determines if it is eligible or not, notifies Assessor • Assessor responsible for subsequent years to maintain compliance, if not in compliance taxes saved would be collected for all years in which qualification was not met, exemption terminates without right of notice or appeal.

5. Multi-Unit Housing – ORS 307.600- • Basics: • Newly built or rehabilitated multi-unit housing near transit routes (light rail/transit-oriented areas) • Unit minimums set by governing body • Transit-oriented areas (area defined in regional/local transportation plans to be in ¼ mile of a fixed route of service • Requires 51% of local taxing district approval via adoption of an ordinance • Can be at county or city level (governing body) • Can establish the following: design elements, set rental rates, extension of public benefits beyond exemption period, require low income housing contract for a # of units. • Tax exemption can be granted up to a maximum 10 years • Application fee to cover administration costs for processing including assessor and governing body • The governing body reviews application for meeting program requirements and determines if it is eligible or not, notifies Assessor • Assessor responsible for subsequent years to maintain compliance, if not in compliance taxes saved would be collected for all years in which qualification was not met, exemption terminates without right of notice or appeal.

6. Single Unit Housing – ORS 307.651 Legislative intent is to encourage homeownership among low and moderate income families • Applies to newly developed or rehabilitated properties of no more than 120% of median sales price of dwelling units located within a city • Requires 51% of local taxing district approval via adoption of an ordinance, allowance for less if county approves • At City level (governing body) • Can establish the following: design elements, set rental rates, extension of public benefits beyond exemption • Requires city approval via resolution/ordinance • Tax exemption can be granted up to a maximum 10 years • Assessor establishes with City an application fee to cover associated costs.

7. Additional exemptions • Vertical Housing – ORS 307.841 • Allows for housing above commercial properties or mixed unit • Non-Profit Homes for the Elderly – 307.370 • Agriculture Workforce Housing/Labor Camps – 307.480 • Land Held by Non-Profits for building homes for Low Income – 307.513 • Low Income Rental Housing – ORS 307.515* • Non-Profit Low Income Rental Housing – ORS 307.540* • Property of a Housing Authority – ORS 307.092 • Charitable 307.130 or Religious Exemption 307.140

8. Exemptions in General Majority of tax exemptions require application to some government entity. Taxation is automatic, exemptions are exceptions to the rule. There are also Low-Income Special Assessment Programs where private individuals receive income tax credits and receive a tax basis based on contracted income not market. Holding land for future use typically does not qualify Exceptions, non-profits for low income housing or other organizations that have specific bylaws and missions that require vacant land (wetlands, ecology, etc) If a project is commercial in nature with the intent to make a profit, and construction in expected to take more than a year to complete, there is a construction in process exemption to take advantage of.

9. Questions: Let me know if you have any questions Feel free to contact me at: Kfleisher21@gmail.com or if in regard to a property tax exemption or specific property at kfleisher@co.tillamook.or.us Thanks for your time! Kari Fleisher At Large Member- Tillamook County Housing Commission