For Immediate Release
Portland City Commissioner Nick Fish, 503-823-3589
Multnomah County Chairman Jeff Cogen, 503-988-3308
Portland and Multnomah County partner to update Limited Tax Exemption program for affordable housing
In Portland and throughout Multnomah County, we believe that people of all income levels deserve a fair shot. That is especially true when it comes to housing. Everyone should have a safe and decent place to call home, close to where they work, in a neighborhood that provides opportunities for a good quality of life.
Unusually low vacancy rates in Portland’s rental market have driven up the cost of apartments in the urban core. It’s getting so that that young families of modest incomes and even young professionals starting out are finding it harder to afford life in the inner city.
“We want a complete community,” said Portland Housing Commissioner Nick Fish. “We want all kinds of working people to be able to afford homes in neighborhoods citywide – we don’t want to become like San Francisco, a city of rich and poor.”
This afternoon, the Portland City Council will consider updates to the city’s Limited Tax Exemption program. The program grants 10-year property tax exemptions to developers who reserve at least 20% of the units in their multi-unit projects for people earning 60% of median family income, $30,660 for a single person or $43,800 for a family of four, or lower; or for new single-family homes sold at an affordable price to modest-income homebuyers. The exemption applies to taxes on the improvements (usually the building) – the land is still taxed.
“The proposed updates will balance the program’s cost in foregone revenue with the value to taxpayers of affordable housing and other public benefits that the program encourages” said Multnomah County Chair Jeff Cogen. “The updates align the LTE program with our community’s goals for housing and improve the program’s efficiency, accountability and transparency.”
The multi-unit projects would generally be located in dense areas downtown, along transit corridors and main streets citywide, and in regional centers. Tax exemptions are also available for new construction of for-sale homes in distressed areas and for multi-family affordable housing projects owned by non-profits. These ensure that people can afford a home in their current neighborhood while helping to improve the community and the quality of life for its residents.
These tools increase affordable housing stock and work against the cycle of low- and modest-income families being priced out as property values rise. This small but effective program counters prevailing market forces without drawing on deep, up-front government subsidies because it leverages the activity of private developers who are building in response to the market. New apartments are being built all over town, including along major transit lines in Southeast and Northeast Portland.
“Why not capitalize on that,” said Chair Cogen. “This is an opportunity for us to get new affordable homes in projects that would be built anyway.”
The city and county have been working together for months with people in the non-profit housing community, developers and other stakeholders to iron out the specifics of the new program.
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