HomeMy WebLinkAbout2016-1219 Study Session PACKET
CITY OF
ASHLAND
CITY COUNCIL STUDY SESSION
AGENDA
Monday, December 19, 2016
Siskiyou Room, 51 Winburn Way
5: 30 p.m. Study Session
1. Public Input (15 minutes maximum)
2. Look Ahead review
3. Update on infill strategies for transit triangle project
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1).
COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014,
CHARTER CABLE WILL BROADCAST MEETINGS ON CHANNEL 180 OR 181.
VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US
City of Ashland Council Meeting Look Ahead
*****THIS IS A DRAFT AND SUBJECT TO CHANGE*****
Responsible Departments SS cc SS SS CC INFO SS SOTC CC SOTC BDGT SS cc SS CC
1/2 Stud Session canceled due to New Years Holida 112
113 Regular Council Meeting
10 Swearing in of city council members Barbara Recorder SWRG
11 Announcement of City Recorder retirement Barbara Recorder PRES
12 Proclamation re grin Christmas Tree-cycle Da Diana Admin PROC
13 Appointment of new Council liaison to the AWAC (Mayor) Admin CONS
Resolution re: police training reimbursements Ti he/Dave L. Police Legal CONS
14 Appointments to Budget Committee Barbara Recorder UNFIN
15 Ordinance clarifying Ethics Code Dave L. Legal ORD-1 ORD-2
16 Ordinance reconciling penalty provisions in mulitple code sections Legal ORD-1
Dave L. ORD-2
17 Ordinance delegating approval and renewal of certain IGAs to City Legal ORD-2
Administrator Dave L.
1/9 Stud Session rescheduled due to holiday) 119
18 Discussion of process for fillip Councilor Marsh's seat Barbara Recorder SS
19 Discussion of issues at Lithia and Pioneer parking lot (request of Admin SS
Councilor Marsh
119 Executive Session immediate) following Stud Session 1/9
20 For real property transaction pursuant to ORS 192.660(2)(e) (Michael Parks EXEC
B.
1/16 Stud Session canceled due to MLK Jr. Da 1116
1/17 Regular Council Meeting 1/17
21 Appointment of new Finance Director Tina HR CONS
22 City hall discussion continued Mike/John PW Admin UNFIN
23 Ordinance clarifying Ethics Code Dave L. Legal ORD-2
24 Ordinance reconciling penalty provisions in mulitple code sections Legal ORD-2
Dave L.) I
Q -
1/19 .
p.m. - Community Center
1/23 Stud Session rescheduled due to holiday) 1/23
25 Presentation regarding potential RR quiet zones Ann Admin SS
26 Preview of Climate & Energy Action Plan Adam Admin SS
1/31 State of the City - Community Center 6:00 p.m. 1/31
2/6 Stud Session in Siski ou Room 2/6
27 Jackson County Vector Control concerns (request of Councilor Voisin) Admin SS
26 Discussion of Electric rate design Mark Electric SS
29 Discussion of process for filing City Recorder seat John Admin Ss
217 Regular Council Meeting 2/7
30 Presentation and approval of the Climate and Energy Action Plan Admin NEW
Adam
31 Results of Citizen survey Ann Admin NEW
Page 1 of 2 12/1412016
City of Ashland Council Meeting Look Ahead
*****THIS IS A DRAFT AND SUBJECT TO CHANGE*****
Departments Responsible 112 1/3 119 1/16 1117 1/19 1123 1124 216 2/7 2/16 2J20 2121 3/6 3/7
2120 Stud Session canceled due to Presidents' Da 2/20
2121 Regular Council Meeting 2121
32 Annual presentation b the Transportation Comm-(Mike) PW PRES
33 Continued discussion/approval of Lithia Way/Pioneer St. beautification PW UNFIN
project Mike
316 Stud Session in Siski ou Room 316
317 Regular Council Meeting 3/7
Commission Presentation Dates - 2017
February 21 - Transportation Commission
March 21 - Tree Commission
April 18 - Historic Commission
May 16 - Wildfire Mitigation Commission
June 6 - Band Board
Jul 18 - Forest Lands Commission
August 15 - Conservation Commission
September 19 - Airport Commission
October 17 - Public Arts Commission
November 21 - Housing and Human Services Commission
December 5 - Planning Commission
Discussion of Class & Compensation stud (request of Councilor Voisin
Discussion of raising the temperature threshold for declaration of extreme weather
emergency shelter (request of Councilor Voisin
Discussion of potential solutions to deer problems (request of Councilor Seffinger)
Discussion regarding the seismic code
Update on internal controls olio
Senior issues (request of Mayor Stromber
Annual use of force report (Tighe)
Report on Eugene homeless and shelter infrastructure, including car camping
(request of Mayor Stromber
Page 2 of 2 12/1412016
CITY OF
AASHLAND
Council Communication
December 19, 2016, Study Session
Update on Infill Strategy for Transit Triangle Project
FROM:
Maria Harris, Planning Manager, maria.harris@ashland.or.us
SUMMARY:
The area comprised of the bus route on Ashland St., Tolman Creek Rd. and Siskiyou Blvd., also
referred to as the transit triangle, has had little development or redevelopment over the past several
decades. Despite an allowance in the commercial and employment zones (C-1 and E-1) for 15 to 3 0
dwelling units per acre, past developments adjacent to the bus route were primarily comprised of
single-use, one story commercial buildings that did not include a residential component.
The first phase of the infill strategy project involved an analysis of the factors that limit the amount and
type of development in the area and a preliminary study of the impact on market feasibility of a mixed-
use multi-story building if changes to the streetscape and zoning and land use standards are considered.
Interviews with development industry professionals were used to verify the construction costs and
rents used in the model. In summary, the analysis indicates that a building with a mix of business and
residential uses based on current land, construction and permitting costs and under current zoning and
land use standards isn't feasible because projected commercial rents are low and the residential rental
rates are high compared to the existing market prices.
The Planning Commission reviewed and discussed the first phase work at their October 11, 2016 and
November 22, 2016 study sessions. Planning Commission representatives, staff and the project
consultant will provide an update on the project to the City Council. Prior to the December 19 City
Council study session, staff and the project consultant will be meeting with developers, contractors and
architects to review the market feasibility analysis.
BACKGROUND:
The "transit triangle" is the area surrounding the bus route in the southern part of the city on Ashland
St., Tolman Creek Rd. and Siskiyou Blvd. (see attached map). The commercial and employment zoned
areas in the transit triangle haven't experienced redevelopment similar to the downtown and railroad
district with a mix of businesses and residential units and a walkable environment that generates
pedestrian traffic.
The transit triangle is served by Rogue Valley Transportation District (RVTD) Route 10. RVTD
recently made service enhancements and as a result Route 10 provides 20 minute service from 7am-
5pm (Monday-Friday) and 30 minute service for the remainder of the day (5am-7am and 5pm-7pm,
Monday - Friday). Route 10 also includes service on Saturdays at hour intervals. Route 10 provides
the highest ridership in the RVTD system (50 percent of all RVTD riders) and the Bi-Mart stop on
Tolman Creek Rd. is one of the most used stops system wide.
Page 1 of 3
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CITY OF
^ASHLAND
Other opportunities in the transit triangle include a sizeable amount of vacant and redevelopable land,
well-established public facilities, and shopping, services and neighborhoods within walking distance.
A challenge in the transit triangle is the transition between new development and existing residential
neighborhoods.
The first phase of the project involved identifying the factors that limit commercial and residential
development in the transit triangle. Fregonese Associates performed a return on investment (ROI)
analysis to examine the market feasibility of a variety of building types using the Envision Tomorrow
(ET) model. The model incorporates land, construction and permitting costs and the physical attributes
of buildings allowed by the zoning and land use standards (e.g., height and size of building, number of
residential units, required parking, required landscaping) to produce achievable rents and sales prices
for commercial space and residential units (see October 11 Planning Commission packet). Interviews
with development industry professionals were used to verify the construction costs and rents used in
the model. The analysis determined that under the current zoning and land use standards, the projected
commercial rents are too low to make new construction feasible and that the residential unit rental rates
are also unfeasible because the rental rates exceed those of the current rental market. In addition, the
projected dwelling units are primarily 1,000 square feet and larger and the rental rates exceed the
amount a two-person household at median income can afford by 30 percent or more.
The first phase also involved a preliminary study of market feasibility and rents levels if changes were
made to the streetscape (e.g., wider sidewalks, street trees, lighting, seating and public spaces) and to
the zoning and land use standards. Specifically, several building prototypes were developed for a test
site at 1896 Ashland Street for the November 22 Planning Commission meeting. Changes in
requirements for building height, number of stories, parking spaces, landscaping coverage and the
maximum number of residential dwelling units allowed per acre, resulted in an increase from seven
residential units to 26 residential studio and one-bedroom residential units. The prototype building is
a three-story building with a ten-foot stepback of the top story. As the number of residential units
increases, the size and rents decrease and begin to approach prices targeted for a two-person median
income household.
The Planning Commission reviewed and discussed the first phase of the project at study sessions in
October and November (see October 11 meeting minutes and November 22 meeting minutes). The
Planning Commission discussion included a variety of comments and concerns including the following
items.
• Is using median income households the right target when Ashland has a population that
is significantly lower than median income'?
• Consider transportation impacts of additional residential units.
• Consider giving more credit for trees in landscaping than ground cover.
• Consider parking demand.
• Street amenities make multi-story project more feasible because land is worth more.
• Consider impacts to adjacent residential neighborhoods.
• Architectural style should fit Ashland.
• Residential units should have a private outside space.
• Consider four stories with two full stories and two stories with stepback.
• Look at feasibility of "tuck-under" parking.
Page 2 of 3
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CITY OF
ASHLAND
• Incorporate vertical housing tax credit.
• Maintain views as drive down streets.
• Are there tools for guaranteeing that smaller units with lower rents will be constructed?
• Should the focus be maintaining residential units as rentals rather than for ownership?
The project addresses a variety of City Council goals and strategies as well as adopted City plans. The
Draft Guiding Principles document included in the October 11 Planning Commission packet details the
applicable Council goals and policies including the following City Council goal for the environment.
Environment
Develop and support land use and transportation policies to achieve sustainable development.
(13)
13.2 Develop infill and compact urban form policies.
• Update infill strategy along major transportation corridors to promote housing and
business development, as well as alternative transportation choices.
The Transportation System Plan includes four projects in the transit triangle related to improving
sidewalks, bus shelters and intersections enhancements for pedestrians including two projects for
Ashland Street Streetscape Enhancements (R38 for Siskivou Blvd. to Walker Ave. and R-39 for
Walker Ave. to Normal Ave.), Ashland Street/Tolman Creek Road (R41) and the Walker Ave. festival
street (R40).
The infill strategy project relates to potential policies included in the draft Climate and Energy Action
Plan (CEAP). Specifically, the draft plan includes strategies to address residential travel and the
emissions associated with passenger cars and trucks. Common strategies for replacing residential travel
trips in passenger cars and trucks include promoting land use development patterns that utilize existing
public infrastructure, and make using transit and alternate modes of transportation possible and even
desirable.
The purpose of the project is to adopt an infill strategy that encourages a greater concentration of
businesses and residential units in the transit triangle, increases transportation choices and promotes
sustainable planning initiatives. A successful project will create several hundred moderately-priced
housing units in an area that has had few multi-family residential units developed over the past several
decades, provide additional business space and jobs, provide increased commercial and residential
density located on the bus route, and transition the area from the current highway environment to a safe
and vibrant walkable corridor.
The next phase of the project involves refining the building prototypes, further analysis of issues such
as transportation system impacts and developing and evaluating a package policies that create
incentives for business and housing development in the transit triangle.
ATTACHMENTS:
1. Map of Transit Triangle
2. Written comments received
Page 3 of 3
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November 21, 2016`d 1'`1 ?
For the Planning Commission regarding the Transit Triangle:
Seven students from our ES/Geography 439 - Land Use Planning class were in attendance at
your October 11, 2016 Planning Commission meeting. They were fulfilling a requirement that
each student attend such a meeting and write a short report/reaction to the meeting and the topics
discussed. Below are some excerpts from their reports that you might find of interest.
Pat Acklin
Professor Emerita of Environmental Studies and Geography
SOU
I was very interested in the fact that the planning commission brought up the idea of
affordable housing several times. Right now affordable housing, especially for college students,
is a huge topic.
Fregonese quoted Ashland's median rent at $1200 per month, and said 30% of renters are
paying over 50% of their income for rent. I see students struggle with astronomical rent prices all
the time, so additional housing, especially at an affordable entry price, would be celebrated by
many young people (read: "millennials") here.
Increasingly, it seems Ashland must choose an identity; is it a small crunchy college town
with a killer Shakespeare festival, or a budding mini-metropolis with urban amenities and
outdoor accessibility all around? One passionate member of the commission repeated the phrase
"Ashland is SPECIAL" like a mantra. Another (in favor of keeping height restrictions) said "We
aren't New York City. Out west, people want space!" These speak to underlying assumptions
that if Ashland becomes more developed, it ceases to be "special," as well as assuming that
people here would rather not live in apartments or mixed-use spaces.
...But it is also true that Ashland is experiencing growth, and finding ways to manage
that (why is there "rush hour" traffic in a town of 20,000??) There were concerns raised about
retirees and families living in apartments. The commission seemed intent on building both
affordable housing for lower-income residents, and single-family homes to attract young
families. Fregonese countered that many families are not conventionally nuclear anymore (i.e. 2
parents, 2 kids, a dog, etc.), and quoted a study showing retirees, along with millennials, are
more likely to rent housing and use public/alternative transit. This is yet another complication to
the matter; who does Ashland want to live here? The council seemed intent on attracting young
families, but even within that discussion it seemed determining what young families are looking
for is a rather convoluted process. I found it curious that nobody mentioned the student
population, since many will be part of "young families" within a few years, and encouraging
them to stay here would (at least according to my own biases) make some sense. Urban
amenities would likely assist with this, since young people could feasibly afford to live without a
car or in a cheaper apartment. How Ashland proceeds remains to be seen; the meeting adjourned
without decision as the commission wanted more time to examine the drafts presented by Mr.
Fregonese and his son. However, at least there was one issue everyone in the room agreed on
that night: Ashland Street is ugly, and could sure use a facelift.
...It really did feel like a big city idea that almost clashed with Ashland's small town vibe.
However I did like the designs and idea of more multiuse buildings in Ashland, especially along
the Ashland Street corridor.
I think that affordability in Ashland is a very big issue. Over the past 17 years I have been
here I have seen two elementary schools shut down as young families moved toward the north
valley where housing is a little more affordable. As a young dad myself I have felt the struggle of
finding affordable housing. I love the Ashland schools and believe living in Ashland should not
only be a viable option for the middle and upper class. Working class people are very much an
asset to any community and sometimes I feel like we are being pinched out by high costs of
living. I was very happy to see these issues being a topic of concern at the planning meeting. I =
will be interested in learning how round two of Fregonese's proposal goes and maybe Ashland
Street will be in for a face-lift in the coming years.
I agree with the Planning Commission and City Council that there is a demand for
affordable housing, that development should happen in Ashland, and that the development
should be affordable. I believe that $1,100 to $2,100 of a monthly rent could be too expensive
for single young people that are looking for apartments. My experience is that the single and
young people I communicate with to prefer to rent below $1,100 a month. Also located within
the transit triangle is a Recreational Vehicle (R.V.) Park which is between Ashland Street and
Siskiyou Blvd. I have personally known people who lived in that park. In this rental area the
rental space is around $600 a month for a tiny R.V. This setup doesn't sound very comfortable to
me and the R.V. park seems to be most affordable for some of our community in Ashland. I can
also say that I would have a difficult time being able to afford an apartment that is over the cost
of $900 a month. I believe that the city would have to remove people living in the R.V. park.
These people would then be displaced and they would have nowhere else to go but out of town
ri
or to live in these more expensive apartments that are to be built.
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November 22, 2016
Ashland Planning Commission
Ashland Planning Staff
Fregonese Associates
Re: Ashland Transit Triangle Infill Strategy
I'm excited to see this level of planning for this area of Ashland. This is a progressive
plaiuling strategy that will help transform Ashland from being a little town to a little City.
A long time ago when I was a Planner with the City of Ashland, the Planners would get
together and have philosophical discussions, usually over a beverage, about how Ashland
needed to retain its identity and characteristics under inevitable population growth, while
at the same time address climate change, affordable housing, transportation solutions,
livability, etc.
This area of the City, which I have no professional or personal interest whatsoever, is
woefully under-utilized but is within a perfect location to connect with necessary public
and private services, transit options and housing. The area's infrastructure is "generally"
available to accommodate Ashland's share of growth as well as the various housing
strategies adopted under the City's Comprehensive Plan and the "required" densities
established under the Regional Problem Solving commitments.
As such, I would encourage the Planning Conunission and City Council to support the
full 3-story option, rather than the 3-story-setback option (In fact, I would like to see what
the numbers would yield for the 4-story option as well, but I know that's likely to
generate some political and neighboring resistance). In my opinion, the full 3-story option
not only provides additional units, but it also begins to generate a sincere conversation
about the financial ability to support underground parking vs. surface parking.
Finally, there is a little known program offered by the State of Oregon's Housing and
Community Services Department called the Vertical Housing Program which allows =
municipalities to identify a Vertical Housing Development Zone (VHDZ) in order to
encourage multi-story mixed-use developments in under-utilized, but over-capitalized
areas like the Ashland Transit Triangle area or the Ashland Railroad Property. The
program essentially offers a 10 year / 20% Tax Exemption "PER" floor" above the
ground floor commercial space for multi-story buildings. A number of cities within the
State of Oregon already have a VHDZ, such as the City's of Medford, Central Point and
soon the City of Talent.
- If sold, 20% exemption "remains" with unit owners. For example, a $3,000 annual tax
X 20% _ $600 or $50 per month or two bags of groceries.
- If for rent, 20% exemption "remains" with developer and can help offset development
regulations such as AMC 18.4.3.080 95 (Environmental & Microclimatic Impacts SRI
1
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for 50% of parking lot I Porous surfacing for 50% of the parking lot or the 50% shade
requirement for solar energy generating covers over the parking lot.
The same VHDZ program offers an Affordable Housing Option "in combination" with
the vertical tax exemption and should be seriously considered along with this effort. In
the end, as a citizen and Land Use Planner in Ashland now for 23 years, I'm excited to
see and hear the Planning Commission take this issue on.
Sincerely,
r~ ~ Y
Mark Knox _
485 W. Nevada Street
Ashland, OR 97520
541-821-3752
Attachment: Housing & Community Services Department, Vertical Housing Program Administrative Rule
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Oregon Secretary of State Archives Division http://areweb.sos.state.or.tis/pages/rules/oars_800/oar-813/813_013.hhnl
a The Oregon Administrative Rules contain OARs filed through October 15, 2016 a
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERETO ACCESS RULES COORDINATOR CONTACT INFORMATION
MOUSING AND COMMUNITY SERVICES DEPARTMENT
DIVISION 13
t
VERTICAL HOUSING PROGRAM
813-013-0001
Purpose and Objectives
1
(1) OAR chapter 813, division 013, is promulgated to carry out the provisions of ORS 307.841 to
307.867 (the "Act") as they pertain to the administration by the Housing and Community Services
Department (the "department") of the Vertical Housing Program described herein (the "program").
The Act, this division and other applicable rules of the department, related documents, and
applicable department determinations and orders constitute the program. The basic purpose of
the program is to encourage construction or rehabilitation of eligible properties in areas of
communities appropriately targeted under the program in order to augment the availability of
suitable housing and to revitalize involved communities. Division 013 sets forth relevant aspects
of the program, including processes and criteria for the designation of vertical housing
development zones ("VHDZs"), for the application and approval of certified projects, for the a
calculation of any applicable partial property tax exemptions, and for the monitoring and
maintenance of properties as qualifying certified projects.
(2) Division 013 is not meant to interfere with the direct administration of property tax k
assessments by county assessors and does not supersede administrative rules of the
Department of Revenue in OAR chapter 150 pertaining to the valuation of property for purposes K
of property tax assessments, including as adopted or amended in the future.
Stat. Auth.:: ORS 456.555, 307.841 - 307.867
Stats. Implemented: ORS 456.555, 307.841 - 307.867
Hist.: OHCS 1-2006(iemp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0005
Definitions
As used in this division 013, unless the context indicates otherwise:
(1) "Certified project' or "project" means a multi-story development within a VHDZ that the
department certifies as a vertical housing development project qualifying for a vertical housing
partial property tax exemption under the Act based on a proposal and description from a project
applicant that conforms to department requirements. Certified projects approved by Business
Oregon (formerly known as the Economic and Community Development Department of the state
of Oregon or "OECDD") prior to November 4, 2005, continue as certified projects notwithstanding
assumption of administration of the program by the department on November 4, 2005. Such prior x
OECDD certified projects continue to maintain their accompanying partial property tax
exemptions throughout their original terms unless all or part of such certified projects are
subsequently modified or decertified by the department. The prior OECDD certified projects are
subject to the ongoing reporting and other requirements of this division 013.
(2) "Construction" means the development of land, and the new construction of improvements to
land as further described in this division 013.
F
(3) "Core area of an urban center" or "core area" means the central business district or downtown m
area of a community of any size, whether or not that community is incorporated. While VHDZs
need not include a core area of an urban center, an application to establish a VHDZ should
identify whether or not the proposed VHDZ includes a core area and describe the core areas so
included. Among other factors determined to be relevant by the department, the department may
consider such information or the failure to provide same in determining the merits of the proposed
VHDZ. It also may consider the core area's proximity and relationship to the needs and activities
of VHDZ project residents. Core areas of urban centers typically consist of one or more of the
following:
(a) An existing central business district or downtown area according to the jurisdiction's zoning
ordinances, the U.S. Census Bureau, or comparable sources of definition or designation;
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(b) A defined central city, regional center, town center, main street and/or a station community in
the Portland Metro 2040 Regional Growth Concept or a nodal development area in the Eugene-
Springfield Metropolitan Area Transportation Plan;
(c) An area satisfying the definition for a commercial node, commercial center, community center,
special transportation area or urban business area in the Oregon Highway Plan;
(d) A transit-oriented development or pedestrian/restricted-access district in the acknowledged
comprehensive plan of the jurisdiction; or
(e) A similar type of area under official criteria, designation or standards.
(4) "Department" means the Housing and Community Services Department of the state of
Oregon.
(5) "Director" means the director of the department or someone within the department authorized
to act on behalf of the director for purposes of the program.
(6) "District" means a local taxing district
(7) "Equalized floor" means the quotient that results from the division of the total square footage
of a certified project, excluding land and ancillary improvements (as determined by the
department) by the number of actual floors of the non-ancillary improvements of the project that 't
are at least 500 square feet per floor unless the department, in its discretion, increases the y
minimum square footage or otherwise qualifies the actual floors of a project eligible to be used as
a divisor in determining the equalized floor quotient. Factors that the department may consider in
determining whether or not to increase the square footage minimum or to impose other conditions j
for a qualifying divisor floor include, but are not limited to the following:
(a) The proximity of the actual floor under consideration to other floors in the project; s
b The extent of construction or rehabilitation on the actual floor under consideration;
(c) The use intended for the actual floor under consideration;
(d) The availability of the actual floor under consideration for use by prospective project tenants;
(e) No partial property tax exemption will be awarded for a partial equalized floor of residential
housing and the maximum number of equalized floors in a project is four (4). Accordingly, the
department will determine the number of residential equalized floors in a project available for
calculating a corresponding property tax exemption by capping potential equalized floors at four 1
and by rounding down to the next complete equalized floor of residential housing. In other words,
a certified project will contain exactly 1, 2, 3, or 4 residential equalized floors reflecting the Dumber
of complete equalized floors of residential housing in a project up to the maximum four(4)
Y
equalized floors;
(f) land, patios, deck space, parking, and other ancillary improvements normally will not be
included by the department in the determination of equalized floors. The department may include
any or all of such space in its determination of equalized floors if it concludes that such space is
critical for the viability of the project. Factors that the department may consider in reaching such a
conclusion include, but are not limited to the following:
(A) The effect of such spaces upon the economic viability of the project;
(B) The degree to which such spaces are integral to the habitability of residential housing in the
project;
(C) The benefit of such spaces with respect to the revitalization of the community in which the
project is located; and
(D) The degree to which inclusion of such spaces modifies the calculation of equalized floors.
(8) "Light rail station area" means, consistent with ORS 307.603(3), an area defined in regional or
local transportation plans to be within a one-half mile radius of an existing or planned light rail
station. While VHDZs need not necessarily include a light rail station area, a VHDZ applicant must
identify in a VHDZ application what part of the VHDZ, if any, does or will include a light rail station
area. The department may consider such information or the failure to provide same in determining
the merits of a proposed VHDZ and its potential relationship to overall transportation needs.
(9) "Low-income residential housing" means housing that is restricted to occupancy by persons or
families whose initial income at occupancy or initial certification of the project is no greater than
80 percent of area median income, adjusted for family size, as determined by the department.
Owners must provide evidence satisfactory to the department of such resident eligibility as
required by the department.
(10) "Non-residential areas" means square footage within a certified project used other than
primarily for residential use or as common areas available primarily for residential use by
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residents of the residential housing within a certified project. Non-residential areas may include but
are not limited to building features that are elements of construction including corridors, elevators,
stairways, lobbies, mechanical rooms, and community rooms. Non-residential areas may include
units designated as live-work spaces in accordance with local zoning requirements.
%
(11) "Project applicant" means an owner of property within a VHDZ, who applies in a manner 4
consistent with this division, to have any or all such property approved by the department as a s
certified project.
l
(12) "Rehabilitation" means the substantial repair or replacement of improvements (including
fixtures) or land developments. In determining whether or not proposed or completed rehabilitation
is satisfactory or substantial, the department may consider factors including, but not limited to: G
(a) The quality and adequacy of design, materials and workmanship;
(b) The quantity of rehabilitation in proportion to the total cost of the project and between the area
devoted to residential use and area devoted to non-residential use;
(c) The distribution of rehabilitation throughout the project, including as it relates to the habitability
of residential areas, and particularly low-income residential housing areas; and F
(d) The value of the improvements on a project. Generally, the value of the improvements must be
at least 20% of the real market value of the entire project on the last certified assessment roll
before the department, in consideration of other factors, will deem rehabilitation to be "substantial"
in nature.
(13) "Residential use" means regular, sustained occupancy of a residential unit in the project by a
person or family as the person's or family's primary domicile, including residential units used
primarily for transitional housing purposes, but not units and related areas used primarily as:
Y
(a) Hotels, motels, hostels, rooming houses, bed & breakfast operations or other such temporary
or transient accommodations; or
(b) Nursing homes, hospital-type in-patient facilities or other living arrangements, even of an
enduring nature, where the character of the environment is predominately care-oriented rather than
r
ti
solely residential
(14) "Transit oriented area" means, consistent with ORS 307.603(6), an area defined in regional
or local transportation plans to be within one-quarter mile of a fixed route transit service. While
VHDZs need not include a transit oriented area, a VHDZ applicant must describe what parts of
the proposed VHDZ, if any, includes a transit oriented area. The department may consider such
information, or the failure to provide same, in determining the merits of the proposed VHDZ and
its potential relationship to established transit systems within the relevant community.
(15) "Vertical housing development project" or "project', means the construction or rehabilitation of
a multiple-story building, or a group of buildings, including at least one multiple-story building, so
that a portion of the project may be dedicated to residential uses and a portion of the project may
be dedicated for use as non-residential areas.
(16) "Vertical housing development zone" or "VHDZ" or "zone" means an area that has been and
remains designated by the department as a vertical housing development zone or an area that
was officially designated by Business Oregon (formerly known as the "Economic and Community
Development Department" (OECDD) prior to November 4, 2005, as a vertical housing
development zone and which remains so designated.
(17) "VHDZ applicant" means one or more cities or counties or a combination thereof, or their
authorized agent(s) that seek the designation of a VHDZ within an area of their jurisdiction by
making application to the department.
Stat. Auth.:ORS 456.555, 307.841 - 307.867
Stats. Implemented: ORS 456.555, 307.841 - 307,867
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0010
Local Taxing Districts and Zone Applications
`1.
(1) To elect not to participate in a VHDZ, a district shall, within 45 days after the date on which
proper written notification is mailed by the VHDZ applicant to the district advising of the
application to form a VHDZ:
(a) Inform the VHDZ applicant in writing of its decision to opt out of the VHDZ designation; and
(b) Furnish to the VHDZ applicant a copy of a resolution or other appropriate official instrument
duly adopted and issued by the governing body of the district affirming its decision to opt out of
the VHDZ designation.
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(2)(a) Not later than 30 days after filing the application with the department, and not later than 30 u
days after receiving a notice provided in 813-013-0010(4), the VHDZ applicant must submit to the
department, a final or supplemental statement, satisfactory to the department identifying the
districts (if any) that have opted out of the VHDZ designation.
(b) The statement required in paragraph (2)(a) shall specifically list each district opting out of the
VHDZ designation, together with a copy of the instrument(s) provided to the VHDZ applicant by
each such district. i
i
(c) Simultaneously with the submission of the statement in paragraph (2)(a), the VHDZ applicant
also shall send a copy of each statement by a district opting out of a VHDZ designation to the
Special Districts Association of Oregon ("MAO"), in Salem (Attn: 'Vertical Housing Development
Zone') and to other affected districts within the proposed VHDZ that are not part of SDAO
(3) A district that fails to respond according to 813-013-0010(1) will be subject to the VHDZ y
designation and excluded from being listed as described in 813-013-0010(2).
(4) A district that forms after the approval of a VHDZ may opt out of participating in a VHDZ. To
opt out, the district must provide:
(a) Written notice post-marked to the assessor and VHDZ applicant on or before July 1 of the first
tax year in which it would impose a tax on the project; and
(b) A copy of a resolution or other appropriate official instrument duly adopted and issued by the
governing body of the district affirming its decision to opt out of the VHDZ designation.
(5) The decision by a district to opt out of a VHDZ will be effective for the tax year that begins on
the next July 1, after notification to the county assessor by the department pursuant to OAR
813-013-0020(1), or by a new district pursuant to 813-013-0010(4).
Stat. Auth.:ORS 456.555, 307.841 - 307.867
Stats. Implemented. ORS 456.555, 307.841 - 307.867 r
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert, ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
t
813-013-0015
- K
Content and Processing of Zone Applications
(1) A VHDZ applicant may apply to the department for the designation of a VHDZ as long as the
VHDZ applicant has provided notification of such intended action to districts within the proposed
VHDZ in form satisfactory to the department not less than 15 calendar days prior to filing the
application.
(2) The application must be made in such form and with such detail and information as the
department may require. The department may require a VHDZ applicant to provide supplemental
information to and clarification of its application, as the department deems appropriate.
(3) Applications must be delivered to the department at the following address: Oregon Housing
and Community Services, 725 Summer Street NE, Suite 8, Attn: Vertical Housing Program,
Housing Finance Division, Salem, Oregon 97301.
(4) An application, at a minimum, must contain:
(a) Copies of the resolutions adopted by the governing body of each city and/or county
comprising the VHDZ applicant and requesting (or as applicable, consenting to) designation of the 1
proposed VHDZ;
(b) A listing of all districts within the proposed VHDZ, a copy of the written notification mailed to
them, and a signed certification of mailing by the VHDZ applicant to the districts in accordance
with 813-013-0015(1);
(c) A description of the area sought by the VHDZ applicant to be designated as the VHDZ,
including but not limited to a scale map clearly showing the proposed VHDZ boundary and a
complete list of property tax accounts with corresponding tax lot numbers to be encompassed by
the VHDZ. A designated VHDZ may include separate, non-contiguous property areas. VHDZ
boundaries also may be designated vertically to limit the height and/or the number of floors of
structures that may qualify as part of a certified project within various parts of the VHDZ; and
(d) Documentation satisfactory to the department establishing that the area proposed for VHDZ
designation is within the jurisdiction(s) of the VHDZ applicant.
(5) The department will act reasonably to review applications submitted by a VHDZ applicant.
E
(6) The department may conduct its own investigation, including the procurement and review of
materials and information outside of the application, to assist it in its review or reconsideration of
an application.
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(7) The director will endeavor to approve or deny applications within 60 days of the department's
receipt of a complete application, the receipt of such other information or clarification as it may
require of the VHDZ applicant, and the completion of any department investigation. The
department will not approve any application before receiving statements required under
813-013-0015(4). The department may decline further consideration of or deny any application if
it determines that the VHDZ applicant has been untimely or unresponsive with respect to providing
required or requested information.
(8) If an application is denied in whole or in part, the department will send a written explanation to
the VHDZ applicant of such determination.
(9) The department may approve or deny any application, in whole or in part, based upon factors
including but not limited to:
(a) The VHDZ applicant's compliance with the requirements of this division 013;
j
(b) The proposed VHDZ's location inside or outside of the jurisdiction(s) of the VHDZ applicant;
(c) The accuracy and completeness of the application and any other information requested from
the VHDZ applicant by the department;
x
(d) Conformance by the VHDZ applicant and the proposed VHDZ with applicable law; and 4
f4
(e) The department's determination of the suitability of the proposed VHDZ, or parts thereof, for
accomplishing the purposes of the program.
;
(10) A department determination to approve or deny any or all of an application is final and not
subject to further administrative or judicial review. The department may reconsider such
determinations at any time and to the degree that it determines to be appropriate.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.844 - 307.851
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
z
813-013-0020
Zone Designations
O 1 The department will send a copy of any designation of a VHDZ to the VHDZ applicant, the
f
Department of Revenue and to any affected county assessor(s) office. The department will
K
include with the notification to the county assessor:
(a) Copies of materials delineating the area of the VHDZ; and
(b) The name of any district that opted out of the VHDZ.
(2) Once designated, a VHDZ shall continue to exist indefinitely, except as provided otherwise in
this division 013.
(3) The boundary of a VHDZ may be modified. To modify a VHDZ, the VHDZ applicant must
apply for such modification to the department in accordance with the same procedures
established herein for the approval of a VHDZ, except the notice to districts required under OAR
813-013-0015(4) is only required for any districts that are included in new territory added by the 51
y
boundary modification. A certified project will continue to have its associated tax exemptions
throughout the initial designated term of those exemptions, regardless of any subsequent
modification of the VHDZ.
(4) VHDZ applicants may seek to have the department approve multiple VHDZs within their
jurisdictions.
(5) The boundaries of VHDZs may not overlap. A property may only be in one VHDZ.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.844 - 307.851
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0025
Municipally Sponsored Development Projects f
(1) Cities and Counties may acquire or dispose of real property located in a VHDZ for the F
purpose of developing Projects- Property acquired by a city or county within a VHDZ may be sold
by the city or county at real market value or, if it will prudently encourage the development of a
Project, at a lesser value. This authority is in addition and without prejudice to any authority by a
city or county that otherwise exists under the laws of this state to acquire or dispose of property.
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(2)(a) Development of Projects may be undertaken by a city or county independently, jointly or in
partnership with a private person or entity.
(b) Development of Projects also may be undertaken by private persons or entities acting i
independently of city or county ownership.
x
Stat. Auth.: ORS 456.555
Slats. Implemented: ORS 307.854
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06
813-013-0030
Zone Termination or Modification
(1) A VHDZ Applicant that initiated the designation of a VHDZ may request that the Department
terminate all or part of the VHDZ provided that:
(a) The VHDZ Applicant furnishes to the Department copies of resolution(s) from the applicable
governing body(ies), adopted not more than 60-days prior to the termination request, that
approve the request to terminate the VHDZ; and
(b) The request otherwise contains such information and is in such form as the Department may
require.
(2) The Department may waive the requirement for approval by all VHDZ Applicant(s) if the
requested termination is partial in nature and applies only to areas exclusively within the
jurisdiction of those VHDZ Applicant(s) seeking the partial termination.
(3) In issuing a VHDZ termination determination, the Department may make the termination
effective at any time within 90 days from receiving a conforming request, taking into account
factors including, but not limited to, pending applications for approval of Certified Projects.
(4) The Department may approve a Certified Project between the time of a request for VHDZ
termination and its termination if the application for certification of the Project was pending with
the Department prior to the Department's receipt of a request for VHDZ termination. However, the
Department may consider the request for VHDZ termination in determining whether or not to
approve the application for a Certified Project.
(5) The Department will send notice of its termination of a VHDZ to the VHDZ Applicant, affected
county assessors, and owners of Certified Projects, of whom the Department is aware.
(6) Subsequent VHDZs may include areas from a terminated VHDZ. A new VHDZ may be _
designated, or an existing VHDZ expanded or reduced, so that there is no discontinuance of a
VHDZ designation for any areas where the VHDZ designation is intended to endure.
r
(7) VHDZ Applicants seeking to form a new VHDZ from the territory of an existing VHDZ or to
i;
expand a VHDZ, will follow the procedures and other directives of the Department for seeking
approval of a VHDZ designation from the Department.
(8) The Department may terminate all or part of a VHDZ on its own initiative, or at the request of
any person, if the Department determines that the VHDZ fails to satisfy the criteria under this
Division 013 for the establishment or maintenance of a VHDZ. Any such termination
determination will not affect existing Certified Projects and is not subject to administrative or
judicial review. The Department may reconsider any such determination.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.844 - 307.851, 307.857, 307.861
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06
813-013-0035
Project Certification Applications
(1) A project applicant may file an application for certification of a project by completing the
vertical housing project application form, as prescribed by and available from the department, and
by delivering it during normal business hours or by mail to: Oregon Housing and Community
Services, Attn: Vertical Housing Program, Housing Finance Division 725 Summer Street NE,
Suite B, Salem, Oregon 97301.
(2) Projects must be described in terms of entire tax lots. Projects may not include partial tax lots.
(3) The project applicant must provide both a legible and scaled site plan and a legal description
of the land for the proposed project.
(4) To be for 'residential use' or for 'non-residential use' does not mean that a building floor is
actually being occupied accordingly, but rather that it is at least intended and ready for such use
and is not converted or occupied for a contrary use.
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(5) Low-income residential housing floors or units must be set-aside as such for the entire tax x
year and occupied only by people who are income eligible in order for the project to qualify for the
low income vertical housing exemptions on land.
(6) The non-residential use of a particular floor or floors may be satisfied even if the entire floor is
not devoted to that use.
5
(7) The department will review applications upon their appropriate delivery subject to, but not
limited to: s
(a) Applications being complete and consistent with department requirements; and E
(b) Delivery to the department of an application processing charge, monitoring charge and any
other related charges. In determining charges for each project applicant, the department may
consider factors including, but not limited to, known and expected costs in processing the
application, effecting appropriate monitoring of the project and otherwise administering the
program with respect to the project. Payment of charges may be made by check or money order
payable to the department and must be submitted along with the project application or as
otherwise required by the department.
(8) For new construction projects to qualify for certification, the application must be delivered to
the department before:
(a) The relevant permitting authority has issued a permanent certificate of occupancy; or
(b) If no certificate of occupancy is required, then occupancy otherwise is effectively prevented
because the proposed certified project has not yet been completed.
(9) For rehabilitation projects to qualify for certification, the application must be delivered to the
department at any stage of the rehabilitation, but not after rehabilitation work on the project is
complete. The department may provide a preliminary certification of the project pending
completion of the rehabilitation of the project. Notification of the project's completion, together
with appropriate documentation of the actual costs of the rehabilitation and the real market value
of the pre-rehabilitated project must be forwarded by the project applicant to the department within r
90 days of project completion. The department may certify all or part of a rehabilitated project or
of a project where the rehabilitation is still in progress as a certified project.
(10) Project applicants must provide the following information in a manner satisfactory to the U
department: y
(a) The address and boundaries of the proposed project including the tax lot numbers, a legible
and scaled site plan of the proposed project, and a legal description of the land involved in the
project for which a partial tax exemption is sought by the project applicant;
(b) A description of the existing condition of the proposed project property;
4
(c) A description of the proposed project including, but not limited to current architectural plans
that include verifiable square footage measurements, verified statements of rehabilitation costs;
and designation of the number of project floors;
(d) A description of all non-residential areas with related and total square footages, and
identification of all non-residential uses;
(e) A description of all residential uses and residential areas with related and total residential
square footages;
(f) A description of the number and nature of low-income residential housing units with related and
total low-income residential housing square footages;
(g) Confirmation that the project is entirely located in an established VHDZ;
(h) A commitment from the project applicant, acceptable to the department, that the project will be
maintained and operated in a manner consistent with the project application and the program for a
time period acceptable to the department and not less than the term of any related property tax
exemption;
(i) A calculation quantifying the various uses of the project in total and by each equalized floor
including allocations to residential uses, the allocations to low-income residential housing uses,
and the allocations to non-residential areas; and; 'F
(j) Such other information as the department, in its discretion, may require.
(11) The project application must be submitted and received by the department on or before the
new construction residential units are ready for occupancy or the project rehabilitation is
complete;
(12) The department may request such other information from a project applicant and undertake
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any investigation that it deems appropriate in processing any project application or in the
monitoring of a certified project. By filing an application, a project applicant irrevocably agrees to
allow the department reasonable access to the project and to project-related documents, including
the right to enter onto and inspect the project property and to copy any project-related documents.
(13) To qualify to be a certified project, the rehabilitation of any existing improvement must
substantially alter and enhance the utility, condition, design or nature of the structure. In its
application, the project applicant must verify such substantial alteration and enhancement. The
following actions, by themselves, are not sufficient to satisfy this substantial alteration and
enhancement requirement irrespective of cost or implementation throughout a project:
(a) Ordinary maintenance and repairs;
(b) Refurbishment or redecoration that merely replaces, updates or restores certain fixtures,
surfaces or components; or
(c) Similar such work of a superficial, obligatory or routine nature.
(14) Unless an exception is granted by the department, projects "in progress" at the time of
application may include only costs incurred within six (6) months of the application date. Factors
that the department may consider in determining whether or not to grant an exception to the six
(6)-month limitation on costs include, but are not limited to the following:
(a) Delay due to terrorism or acts of God;
(b) Delay occasioned by requirements of the department;
(c) Resultant undue hardship to the project applicant;
ti
(d) The complexity of the project; and
(e) The benefit of the project to the community.'
(15) For applications filed before project completion, the department may provide a conditional
letter of prospective certification of the project pending its completion. To obtain a final
certification of the project, the project applicant must provide timely notification to the department
of the project's completion, together with a copy of the certificate of occupancy and other
information as the department may require. A project applicant must provide the notice and
required documentation to the department within 90 days of project completion which is typically
the date of the certificate of occupancy unless the department determines that another date is
more appropriate.
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(16) If an application is rejected for failure to meet department review requirements, then:
(a) The department will notify the project applicant that the application has been rejected; and
(b) The department, at its own discretion, may allowthe resubmission of a rejected application for
project certification ("as is" or with appropriate corrections or supplementations) or may
reconsider a determination by it to reject an application. Factors that the department may consider 4
in allowing a resubmission of a rejected application or the reconsideration of a determination by it
to reject an application include, but are not limited to the following:
(A) Whether or not rejection results in undue hardship to the project applicant;
(B) The best interests of the community;
(C) The level of cooperation from the project applicant;
(D) The level and materiality of initial non-compliance by the project applicant, and;
(E) Mitigation of any initial non-compliance by the project applicant.
(c) If the department accepts for review a previously rejected application, it may do so, at its sole
discretion, on a prospective basis or based upon the original date of filing. Factors that the
department may consider in determining the date to apply to a previously rejected application
include, but are not limited to the following:
(A) Whether or not occupancy or readiness to occupy residential units in the project has occurred
since the original application;
(B) Whether or not undue hardship would result to the project applicant;
(C) The best interests of the community; and
(D) The level and materiality of non-compliance in the initial application.
(17) The department will evaluate each accepted application to determine whether or not to certify
the proposed project.
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Stat. Auth.: ORS 456.555
Slats. Implemented: ORS 307.844 & 307.857
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 1-2015(Temp), f. & cert. of 2-26-15 thru 8-24-15; OHCS 4-2015, f. & cert. ef. 7-9-15;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0040
Project Criteria
(1) A project, to qualify for department certification, must satisfy each of the following criteria:
(a) The project must be entirely located within an approved VHDZ;
(b) The project must be comprised of a multiple-story building, or a group of buildings, including at
least one multiple-story building, so that a portion of the project is to be used for non-residential
uses and a portion of the project is to be used for residential use;
(c) A portion of the project must be committed, to the department's satisfaction, for residential
use and a portion of the project must be committed, to the department's satisfaction, for use as
non-residential use.
(d) The commitment to non-residential use must be accomplished as follows:
(A) For a project site that has frontage on one public street, at least 50% of the project's public 1
street-fronting ground floor facades must be committed for non-residential use;
(B) For a project site that has frontage on more than one public street, the developer must
designate one of the public streets as the project's primary public 'street. One-hundred percent
(100%) of the project's primary public street-fronting ground floor facades must be committed for
non-residential use;
i
(C) "Committed for non-residential use" means that all interior spaces adjacent to the public
street-frontage exterior facade are constructed to building code standards for commercial use,
are planned for commercial use and/or live-work use upon completion, or both;
(D) For purposes of this rule, "public streets" include all publicly-owned streets, but does not
include alleys.
(E) For purposes of this rule, "live-work" spaces mean those areas within a project combining
space for a commercial or light manufacturing business allowed by local zoning code with a
residential living space for the owner of the business and space comprising that owner's
household. Any live-work space is deemed to be committed for non-residential use under the
program. The work portion of a live-work unit must have direct access to street level entrances of
s
the project.
ti
(e) Each phase of a phased development, whether vertical or horizontal, will be treated as a
separate project for application purposes.
(f) Each project must be on its own independent legal tax lot(s). '
(g) Construction or rehabilitation must be or have been undertaken with respect to each building or
associated structure included in the project, including but not limited to, additions that expand or )
enlarge an existing building; x
u
(h) The project application must be complete and fully satisfactory to the department;
(i) The project application must be received by the department on or before the residential units
are ready for occupancy (certificate of occupancy). For rehabilitation not involving tenant
displacement, the project application must be filed before the rehabilitation work is complete;
~a
(j) Calculation of equalized floors is adequately documented; 4
(k) Documentation, satisfactory to the department, establishes the costs of construction or
rehabilitation of project land developments and improvements, as applicable; and 2
F;
(1) The project square footage calculations do not include parking, patio, or porch areas unless
these elements can be demonstrated by project applicant to the satisfaction of the department [
that they are economically necessary to the project and the department otherwise determines that i
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it is appropriate to grant an exception for the inclusion of any or all of such areas in the project; U
(2) Certified projects with at least one equalized floor of low-income residential housing may
qualify for a partial property tax exemption with respect to the land contained within the tax lot
upon which the certified project stands, but will not qualify for a partial property tax exemption
under the program for land adjacent to or surrounding the certified project contained in separate
tax lots. Excess or surplus land that is not necessary for the project, as determined by the
department, will not be eligible for partial exemption; and
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(3) Low-income residential housing units in the certified project must continue to meet the income
eligibility requirements for the definition of low-income residential housing for the entire period for
which the vertical housing project is certified.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.844, 307.857
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(femp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0045
Department Certification of Projects
(1) The Department will endeavor to process each accepted application and make a
determination whether or not to approve such application, in whole or in part, within 60 days of
when the accepted application is received by the Department at its Salem Office.
(2) If the application is approved, the Department will: j
(a) Issue a letter to the Project Applicant describing the Certified Project with an explanation of the
partial property tax exemption effective for the Certified Project; and
(b) Send a copy of the Project information to the county assessor(s) of the county or counties in
which the Certified Project is located.
(3) The owner of a Certified Project must execute and record a Project Use Agreement, including
restrictive covenants running with the land and equitable servitudes, satisfactory to the
Department in the appropriate county or counties of record. Recordation of such instruments
satisfactory to the Department constitutes a condition precedent to the approval of the Certified
Project taking legal effect. The Department may void any Certified Project approval for failure to
timely record and provide the Department with a copy of any such instruments. The owner shall be
responsible for the cost of recording and providing satisfactory evidence to the Department that
such instruments have been properly recorded.
(4) If the application is denied, the Department will send written notice of the denial to the Project
Applicant. At its option, the Department may allow reapplication by the Project Applicant
consistent with 813-013-0035.
)
(5) Certification by the Department of a Project may be partial in scope. The Department's letter l
of approval will identify what portions of the property and improvements included in the Project
application constitute the Certified Project.
;a
1
(6) The letter of approval from the Department also may include such information and instructions
as the Department deems appropriate.
Stat. Auth.: ORS 456.555
c
Stats. Implemented: ORS 307.857, 307.861 }
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06
{
813-013-0050
Project Monitoring/Decertification
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(1) A monitoring charge shall be paid by the project applicant to the department at the time of
F
project application, or as otherwise directed by the department, to cover the department's actual
k
and anticipated costs of monitoring and otherwise addressing compliance by the certified project r
with program requirements including, without limitation ORS 307.841 to 307.861 and other z
applicable law. The department may consider factors including but not limited to the following in
determining the amount of this monitoring charge: u
fa
(a) The size of the project;
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(b) The number of residential housing units;
t~:
(c) The amount of commercial space, including any live-work units; F
(d) Project uses;
(e) Project location; r
(f) The duration and complexity of compliance requirements;
(g) The level and amount of staff or other services involved;
(h) The use of supplies, equipment or fuel; and
(i) The number of separate sites and/or buildings.
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(2) If the project includes low-income residential housing, the project applicant must pay a
supplemental monitoring charge to the department at the time of project application, or as j
otherwise directed by the department, to cover the department's actual and anticipated costs of
monitoring and otherwise addressing compliance by the certified project with program
requirements including, without limitation ORS 307.841 to 307.861 and other applicable law. The
department may consider factors including, but not limited to those in 813-013-0050(1) and the
nature of the low-income residential housing population in determining the amount of this
supplemental monitoring charge.
(3) The department may condition its approval of a certified project upon payment by project
applicant of the applicable charges described above in 813-013-0050(1) and (2). The department
may void or terminate the certification of all or a portion of a certified project if such charges, or
any part thereof, are not timely paid.
(4) Modifications to or transfers of ownership of a certified project must receive prior written
approval from the department. The department will not unreasonably withhold its approval of such
modifications to or transfers of ownership. The department may void or terminate the certification
of all or a portion of a certified project if modifications to or transfers of ownership are made
without its prior written approval except where such modifications or transfers occur by operation
of law following death or divorce.
(5) If there are proposed or actual modifications to or transfers of ownership of the certified
project, the certified project owner shall notify both the county assessor and the department of the
new owner's name, contact person, mailing address and phone number within 30 days of the
change.
(6) The department may require the certified project owner to pay an administrative charge to
cover the department's actual and anticipated costs of reviewing and processing such
modification or transfer including, without limitation, effecting the legal review, amendment,
execution or recording of related documents. The department may consider factors including, but
not limited to those in 813-013-0050(1) in determining the amount of this administrative charge.
(7) The department may condition its approval of a modification to or transfer of ownership in a
certified project upon payment by the certified project owner of the administrative charge
described above in 813-013-0050(6). The department may void or terminate the certification of all
or a portion of a certified project if such an administrative charge, or any part thereof, is not timely
paid.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.857, 307.861
Hist.: OHCS 1-2006(Temp), f. & cert. ef. 1-5-06 thru 7-4-06; OHCS 8-2006, f. & cert. ef. 6-28-06;
OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru 5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0054
Monitoring; Investigations; Remedies; Decertifications
(1) The department may monitor and investigate certified projects for compliance with program
requirements and other applicable law as it deems appropriate. By making application for
approval of a certified project, project applicants irrevocably agree and give their consent that the
department may enter onto the premises of and inspect all portions of the project as well as
review and copy project documents in the course of its monitoring and investigatory actions.
Project applicants further agree to cooperate fully with such department monitoring and
investigatory actions.
(2) The department may undertake any remedial action that it determines to be necessary or
appropriate to enforce department interests or program requirements including, without limitation,
commitments provided by project applicants in the final application and certification. Remedial
actions may include, but are not limited to:
(a) The requesting of project documentation;
(b) The issuance of orders and directives with respect to the project or otherwise:
(c) The initiation and prosecution of claims or causes of action, whether by administrative hearing,
civil action or otherwise (including, without limitation, actions for specific performance,
appointment of a receiver for the certified project, injunction, temporary restraining order,
recovery of damages, collection of charges, etc.); and
(d) The decertification of all or a portion of a certified project.
(3) Prior to decertifying all or part of a certified project and directing the county assessor to
disqualify all or part of the project for partial property tax exemption treatment, the department
shall issue a decertification notice to the certified project owner identifying relevant factors among
the following:
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3
(a) The property decertified from the project; x
s
(b) The number of equalized floors that have ceased qualifying as residential housing for
purposes of the program;
(c) The number of equalized floors that have ceased qualifying as low-income residential housing
for purposes of the program; t
(d) The remaining number of equalized floors of residential housing in the project and a
description of the property of each remaining equalized floor;
t
(e) The remaining number of equalized floors of low-income residential housing in the project and
a description of the property of each remaining equalized floor of low-income residential housing;
(f) If the project no longer includes commercial space consistent with the intent of the program;
and
(g) Such other information as the department may determine to provide. a
(4) Prior to issuance of a notice of decertification, the department will provide the certified project
owner with notice of an opportunity to correct first-time program non-compliance within a
reasonable amount of time as determined by the department. The department also may elect to
provide the certified project owner with notice of an opportunity to correct repeat program j
non-compliance within a reasonable amount of time as determined by the department. In deciding
whether or not to provide the certified project owner with notice of an opportunity to correct repeat
program non-compliance and in determining how much time to provide the certified project owner
to correct any noticed program non-compliance, the department may consider factors including,
but not limited to: x
(a) The severity of the non-compliance;
(b) The impact of non-compliance upon project tenants and patrons;
i
(c) The public interest in appropriate and affordable housing;
(d) The public interest in the revitalization of relevant communities;
(e) The cost and time reasonably necessary to correct program non-compliance; and
(f) The past history of compliance and non-compliance by the project owner.
(5) For those instances where the department has elected to provide notice to a certified project
owner of its non-compliance, if the department determines that the certified project owner has
failed to correct any noticed program non-compliance within the time allowed by the department in
its notice, the department may issue the notice of decertification identified above in
813-013-0054(3) and direct the county assessor to disqualify all or a portion of the project from
property tax exemption under the program. The department also may issue a notice of
decertification and direct the county assessor to disqualify all or a portion of a project from
property tax exemption under the program with respect to program non-compliance for which it
determines not to provide prior notice and an opportunity for non-compliance correction.
(6) The effective date of a decertification is the effective date of same provided in the notice of
decertification identified above in 813-013-0054(3). The effective date of a decertification may be
retroactive from the date of the actual notice of decertification only to the commencement of the
non-compliance for which the decertification is issued as determined by the department. In
determining whether or not to make the decertification retroactive, the department may consider
factors including, but not limited to those identified above in 813-013-0054(4), the intentional
nature of the non-compliance, and when the owner or its agents became aware or reasonably
should have become aware of the non-compliance.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.861, 307.864
Hist.: OHCS 8-2006, f. & cert. ef. 6-28-06; OHCS 19-2015(Temp), f. & cert. ef. 11-30-15 thru
5-27-16; OHCS 5-2016, f. & cert. ef. 5-27-16
813-013-0061
Partial Property Tax Exemptions for Certified Projects
(1) In order to receive a partial property tax exemption under this Division 013, the Certified
Project owner, the Project Applicant or other person responsible for the payment of property
taxes on the Certified Project must notify the county assessor of the county in which the Certified
Project exists, that the Project has been approved by the Department as a Certified Project and
qualifies for a partial property tax exemption.
(2) The notification described above in 813-013-0061(1) must be delivered to the county assessor
in writing on or before April 1 preceding the first tax year for which the partial property tax
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exemption is sought.
(3) Except as modified by 813-013-0061(4) and (5) of this rule, the exemption applies to the
Construction or Rehabilitation of real property improvements associated with the Certified Project
or the inclusion of affordable housing on the Certified Project, in each of the tax years for which
the exemption is available, including but not limited to land development.
O 4 The property exemPtion, rate equals 20, percent (0.2) multiplied by the number of full
_ Y
Equalized Floors (among all associated buildings exempt in that year), up to but not exceeding 2
four such Equalized Floors, that are:
(a) For Residential Use; and t
(b) Constructed or Rehabilitated as part of the Vertical Housing Development Project. For
purposes of calculating the partial property exemption, the Equalized Floor quotient is rounded
down to whole numbers reflecting only fully Equalized Floors up to a maximum of four such
Equalized Floors.
)
(5) Consistent with 813-013-0061(2), the partial property tax exemption on a Certified Project is
available for ten consecutive tax years beginning with the 'first tax year in which, as of the
assessment date, the Project is occupied or ready for occupancy following its approval by the
Department as a Certified Project.
(6) If during the period of partial tax exemption, any part of a Project dedicated for Residential
Use is converted to or used as Non-Residential Area, the county assessor and the Department
shall be notified by the Project owner of such change. Similarly, the county assessor and the
Department shall be notified in writing by the Project owner if any part of a Project dedicated to
Low-Income Residential Housing is converted to other purposes or otherwise used in a manner
that does not comply with Low-Income Residential Housing requirements.
(7) In order to receive partial property tax exemption with respect to a Certified Project, the
Certified Project owner shall apply to the county assessor of the county in which the Project
exists. Upon written application for partial exemption to the appropriate county assessor, the
Certified Project owner will provide the county assessor:
(a) A letter specifically requesting the partial tax exemption in accordance with the Certified
Project approval certification;
(b) A copy of the final Project application for certification,
(c) A copy of the Certified Project approval certificate issued by the Department,
(d) A copy of the certificate(s) of occupancy for the entire Certified Project; and,
(e) Such fee(s), if any, as the county assessor may require.
(8) The certificate of occupancy or temporary certificate of occupancy must be dated prior to
January 1 of the assessment year for which the exemption is requested.
(9) The written application for exemption must be made to the county assessor on or before April
1 of the assessment year for which the exemption is sought and the exemption will be effective
for the first year for which the partial property tax exemption is available and for the next nine
consecutive tax years.
(10) If all or a portion of a Certified Project is decertified by the Department, that portion of the
Certified Project shall be disqualified from partial property tax exemption as set forth in the notice
of decertification.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.861, 307.864
Hist.: OHCS 8-2006, f. & cert. ef. 6-28-06
ri
813-013-0065
Waiver
The Department may waive or modify any requirements of OAR 813, division 013, unless such
waiver or modification would violate applicable federal or state statutes or regulations.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 307.841 - 307.867
Hist.: OHCS 8-2006, f. & cert. ef. 6-28-06
The official copy of an Oregon Administrative Rule is contained in the Adntinistrative Order filed at the Archives Division, 800
Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative
Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and
Conditions of Use
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