TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Property tax exemptions for nonprofit owned low-income housing properties
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall City Council adopt Resolution No. 2018-84 approving property tax exemptions for seven nonprofit owned low-income housing properties?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2018-84 approving property tax exemptions for seven nonprofit owned low-income housing properties.
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SUMMARY AND BACKGROUND:
Low-income housing is a community need identified in the City’s Strategic Plan. State statute and Salem Revised Code allow establishing a property tax exemption for qualified nonprofit owners of low-income housing. On January 8, 2018, Ordinance Bill Number 29-17 was enacted to establish a property tax exemption program to encourage low-income housing preservation and development by lowering costs for non-profit providers of low-income housing.
Applications (Attachment 2) for this property tax exemption were received from:
Four Oaks Housing Limited Partnership
Wallerwood Limited Partnership
Salem Self Help Housing, LLC (two properties)
Cornerstone Apartments LP
Sunnyslope Manor Associates, Inc.
Oakhill Associates, Inc.
Staff has reviewed the applications and recommends approving property tax exemptions for each of the property owners.
FACTS AND FINDINGS:
Theproperty owners completed the City’s application for this program and provided documentation that they meet the program’s requirements.
Following approval of these exemptions, the property owners will need to apply annually for recertification, provide documentation to support that the property is occupied by low-income persons, and show how the exemption will benefit project residents. As the preservation of low-income housing is a key component of the proposed program, the property must be maintained in a safe and habitable condition.
A public notification effort will be undertaken for subsequent application cycles for this program. Future application cycles will continue to occur annually during the summer with applications due prior to September 1 each year.
Renee K. Frazier
Financial Services Manager
Attachments:
1. Resolution No. 2018-84
2. 2019-20 Program Applications