Chapter 3.10
MULTIPLE-UNIT PROPERTY TAX EXEMPTION PROGRAM
Sections:
3.10.030 Preapplication conference.
3.10.040 Application procedure.
3.10.070 Review of the application.
3.10.010 Generally.
A. The provisions of ORS 307.600 to 307.637 are hereby adopted to stimulate the construction, or addition of or conversion to multiple-unit housing in the designated core area of the city and in transit oriented areas; and it is found that multiple-unit housing meeting the qualifications of ORS 307.606(4) would not otherwise be built in the designated areas without the benefits provided by ORS 307.600 to 307.637.
B. The tax exemption may be approved for up to ten consecutive years beginning July 1st of the tax year after completion of construction.
C. The term "applicant," as used in this chapter, means the person seeking the property tax exemption provided by this chapter.
D. At any time, the city council may, by motion or upon request by the Lane County board of commissioners, set a limit on the maximum amount of foregone tax revenue provided as a benefit of the exemption under this chapter. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.020 Eligible property.
To be eligible for the property tax exemption provided by this chapter, the multiple-unit housing must be a newly constructed structure(s), stories or other additions to existing structure(s) and structure(s) converted in whole or in part from other use to housing that meets the following criteria:
A. Include three or more dwelling units that are not designed or used as transient accommodations rented for less than thirty consecutive days (including hotels and motels).
B.1. Include five percent of the total dwelling units as regulated affordable housing (sixty percent AMI) for the duration of the abatement period and one design element benefiting the public as described in this chapter and approved by the council; or
2. Include three or more elements benefiting the public as described in this chapter and approved by the council.
C. Be housing which is completed on or before the date specified in ORS 307.637 (Deadlines for actions required for exemption).
D. Be located within the designated core area, to wit: within an area zoned C-2 central business district or within one-quarter mile of the LTD fixed route transit service, as delineated on the date of the adoption of the ordinance codified in this chapter.
E. Be in compliance with all local plans and planning regulations applicable at the time the application is approved. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.030 Preapplication conference.
A. The applicant shall request that the public works and development director schedule a preapplication conference no later than December 31st of the calendar year immediately prior to the first assessment year for which the exemption is requested. Each applicant shall submit in writing, on forms furnished by the public works and development director, the following information:
1. The applicant’s name, address, and telephone number.
2. A preliminary sketch, drawn to approximate scale of one inch equals twenty feet, which shows the site plan and major features of the proposed development.
3. A written statement which generally describes the location of the proposed development; the number, size, and type of dwelling units; dimensions of structures; public and private access; parking and circulation plans; landscaping; uses; and a description of the public benefit(s) the applicant proposes to include in the project.
B. Prior to the preapplication conference, the public works and development department shall review the information supplied by the applicant and contact, for purposes of facilitating the application process, advisory bodies, departments, or agencies which may be affected by or have an interest in the proposed development.
C. The applicant shall meet with staff of the public works and development department in the preapplication conference and discuss the applicant’s proposed development. After this conference, the public works and development department shall provide the applicant with a written summary of the meeting, including recommendations to inform and assist the applicant in preparation of the exemption application. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.040 Application procedure.
A. The applicant shall apply to the public works and development department no later than February 1st of the year for which the exemption is requested. The applicant shall submit an application for exemption in writing on forms furnished by the public works and development director which must show:
1. The applicant’s name, address, and telephone number.
2. A legal description of the property and the assessor’s property account number for the site, and indication of site control.
3. A detailed description of the project, including the number, size, and type of dwelling units; dimensions of structures, parcel size, proposed lot coverage of buildings, and amount of open space; type of construction; public and private access; parking and circulation plans; landscaping; uses; a description of the public benefit(s) which the applicant proposes to include in the project; proposed rental rates or sale prices; and economic feasibility studies or market analysis when appropriate.
4. A description of the existing use of the property, including a justification for the elimination of existing sound or rehabilitable housing.
5. A site plan and supporting materials, drawn to a minimum scale of one inch equals twenty feet, which shows in detail the development plan of the entire project, showing streets, driveways, sidewalks, pedestrian ways, off-street parking, and loading areas, location and dimension of structures, use of land and structures, major landscaping features, and design of structures.
6. A description and the monetary value of any other public assistance, including, but not limited to, grants, loans, loan guarantees, rent subsidies, fee waivers, or other tax incentives, which the property is receiving or which the applicant plans to seek.
7. Applicant’s sworn verification of application contents.
B. At the time the application is submitted, applicants shall pay an application fee as prescribed by resolution of the council after consultation with the county assessor. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.050 Public benefits.
A. In order to qualify for the exemption provided by this chapter, the applicant must propose and agree to include in the proposed project one or more design elements benefiting the general public if regulated affordable housing is included per Section 3.10.020(B)(1); or three or more design elements benefiting the general public per Section 3.10.020(B)(2), which may consist of, but not be limited to:
1. Commercial uses in the ground floor of the multiple-unit housing structure;
2. Parks and recreation facilities (over required minimum);
3. Open spaces (over required minimum);
4. Common meeting rooms;
5. Child care facilities;
6. Provision of pedestrian-oriented design features;
7. Provision of amenities and/or programs supportive of the use of mass transit;
8. Facilities for persons with disabilities;
9. Special architectural features;
10. Dedication of land or facilities for public use;
11. Development or redevelopment of blighted property;
12. Extra costs associated with infill or redevelopment projects, such as land assembly, environmental cleanup, demolition, and infrastructure replacement or expansion;
13. Development on existing surface parking lots;
14. Compliance with Leadership in Energy and Environmental Design (LEED) certification requirements;
15. Seismic retrofitting;
16. Inclusion of additional tenant amenities;
17. Units at rental rates which are accessible to a broad income range of the general public. There are two ways the intent of this benefit could be met: by providing a variety of differently valued units within a development, or by providing units in a value range not well represented, as determined by economic studies or market analysis;
18. Public Infrastructure. The project may also advance priority public infrastructure projects as identified in the city of Cottage Grove’s master plans, capital improvement plan (CIP), or strategic operational plan (SOP), with an investment of at least fifty thousand dollars.
B. Public benefits provided by this section are not necessarily required to be available to the public at large if the council finds the design elements proposed by the applicant provide sufficient public benefit.
C. More information about each public benefit can be found in the standards and guidelines adopted by council resolution. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.060 Change of use.
Notwithstanding the zone of the property on which the proposed project is to be located, no change of occupancy permit or building permit for change of use of dwelling units constructed under the provisions of this chapter will be issued unless specifically authorized by the council. Such a change may be authorized by the council on the basis of the owner’s justification of need to remove the housing resource. No such change of use will be considered within the approved ten-year exemption period. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.070 Review of the application.
A. The council may approve the application if it finds, in accordance with standards and guidelines adopted by resolution of the council, that:
1. The property is eligible as provided in Section 3.10.020;
2. The project is in conformance with the comprehensive plan and zoning regulations; and
3. The public benefit the property will receive pursuant to this program will be reasonable when considered in combination with other public benefits it is receiving or for which the owner plans to apply.
B. The council shall review the application within one hundred eighty days of filing and approve, deny, or approve subject to reasonable conditions the application. Final action by the council shall be by resolution that shall contain the owner’s name and address, a description of subject multiple-unit housing, either the legal description of the property or the assessor’s property account number, and the specific conditions upon which the approval of the application is based. An application not acted upon within one hundred eighty days following the date of application shall be deemed approved.
C. If the application is denied, the resolution and a notice of denial shall be sent to the applicant within ten days following the denial. The notice shall state the reasons for denial.
D. If the application is approved, on or before April 1st following approval, the public works and development director shall file with the county assessor and send to the applicant at the applicant’s last known address a copy of the resolution approving the application. In addition, for each application which is approved, the public works and development director shall file with the county assessor, on or before April 1st following approval, a document listing the same information otherwise required to be in a resolution approving an application under this chapter. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.080 Termination.
A. If, after an application has been approved, the public works and development director finds that construction of multiple-unit housing was not completed on or before the deadline for actions required for exemptions specified in ORS 307.637, or that any provision of this chapter is not being complied with, or any agreement made by the owner or requirement made by the council is not being or has not been complied with, the public works and development director shall send a notice of the proposed termination of the exemption to the owner’s last known address.
B. The notice of termination shall state the reasons for the proposed termination, and shall require the owner to appear before the council at a specific time, not less than twenty days after mailing the notice, to show cause, if any, why the exemption should not be terminated.
C. If the owner fails to appear and show cause why the exemption should not be terminated, the public works and development director shall further notify every known lender and shall allow the lender a period of not less than thirty days, beginning with the date that the notice of failure to appear and show cause is mailed to the lender, to cure any noncompliance or to provide assurance that is adequate, as determined by the public works and development director, to assure the city that the noncompliance will be remedied.
D. If the owner fails to appear and show cause why the exemption should not be terminated, and a lender fails to cure or give adequate assurance that any noncompliance will be cured, the council shall adopt a resolution stating its findings and terminating the exemption. A copy of the resolution shall be filed with the county assessor and a copy sent to the owner at the owner’s last known address, and to any lender at the lender’s last known address, within ten days after its adoption. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)
3.10.090 Extensions.
Notwithstanding Section 3.10.080, if the council finds that construction or addition of, or conversion to, the multiple-unit housing was not completed by the deadline for actions required for exemptions specified in ORS 307.637, due to circumstances beyond the control of the owner, and that the owner has been acting and could reasonably be expected to act in good faith and with due diligence, the council may extend the deadline for completion of construction for a period not to exceed twelve consecutive months. (Ord. 3173 §1, 2023; Ord. 3117 §3(Exh. A)(part), 2019)