TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Kristin Retherford, Director, Community Planning and Development
SUBJECT:
title
Resolution 2026-03; Approving Non-Profit Low-Income Housing Tax Exemption for five Properties in accordance with SRC 2.850 to 2.910
Ward(s): 3, 5, 6
Councilor(s): Matthews, Brown, Vang
Neighborhood(s): SEMCA, Northgate, ELNA
Result Area(s): Welcoming and Livable Community.
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SUMMARY:
summary
This resolution affects five properties under the Salem Non-Profit Low Income Housing Tax Exemption Program (SRC 2.850-2.900). Two United Way of Mid-Willamette Valley properties were previously granted an exemption, but Council considered the termination of the tax exemption through Resolution No. 2026-02. The United Way of Mid-Willamette Valley has reapplied for the tax exemption for the two properties. Three other properties have also applied for the tax exemption. Two properties are in pre-development, and one is developed and is leasing units. A pre-development exemption is valid for up to three years. Council grants initial applications with recertification authority for up to 10 years delegated to the Department Director if the property meets exemption criteria.
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ISSUE:
Shall City Council adopt Resolution 2026-03 approving property tax exemptions for five low-income housing properties in accordance with SRC 2.850-2.910?
RECOMMENDATION:
recommendation
Adopt Resolution 2026-03 approving property tax exemptions for five low-income housing properties in accordance with SRC 2.850-2.910.
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FACTS AND FINDINGS:
The five properties that applied and meet the program criteria:
- United Way of Mid-Willamette Valley, 4446 Market St NE, tax account 547831 (pre-development)
- United Way of Mid-Willamette Valley, 4396 Market St NE, tax account 576452 (pre-development)
- Blossom Garden LP (Salem for Refugees), 3434-3470 Blossom Dr NE, tax account 605181 (developed)
- Community Resource Trust, Joseph St SE, tax account 349999 (pre-development)
- Farm Worker Housing Dev Corp, 3010 Lancaster Dr SE, tax account 529425 (pre-development)
These five properties represent about $31,200 in City tax revenue. The four pre-development properties are all less than $1,300/lot in tax revenue, while the developed lot is approximately $27,800.
BACKGROUND:
The City started the Non-Profit Low-Income Housing Tax Exemption Program in 2018 under the provisions of ORS 307.540. The addition of these five properties will bring the total count to 23 tax accounts, owned by nine non-profits. The City’s total exemption value is approximately $168,300, and subtracting the URA located properties means the tax exemption impact to the General Fund is approximately $81,500.
Michael Brown
Manager, Housing Production Programs and Incentives
Attachments:
1. Resolution 2026-03
2. United Way of Mid-Willamette Valley, 4446 Market St NE Application
3. United Way of Mid-Willamette Valley, 4396 Market St NE Application
4. Blossom Garden LP (Salem for Refugees), 3434-3470 Blossom Dr NE Application
5. Community Resource Trust, Joseph St SE Application
6. Farm Worker Housing Dev Corp, 3010 Lancaster Dr SE Application