1993-43710-Resolution No. 93-109 Recorded 11/26/1993RE ED
d
` 93-43710
L COUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES ,
A Resolution Adopting * tin 4,
=: 1, ;U
Standards and Guidelines for
Processing Applications for
New Low -Income Rental Housing *
Local Property Tax Exemption.
0128-0797
RESOLUTION NO. 93-109
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. The Standards and Guidelines for Processing
Applications for New Low -Income Rental Housing Local Property Tax
Exemption, attached as Exhibit "A" hereto, are approved and adopted as
the procedures to be followed in considering applications for
exemption, and the policy contained therein is declared to be the
policy of Deschutes County governing the basic requirements for
applications.
DATED this t day of 1993.
E T:
Recording Secretary
BOARD OF/COUNTY COMMISSIONERS
OF DESS UTES COUNTY, OREGON
THROOP
'�'V �VAV y ��17(11'
BARRY 9. SLAUGHTIER, Commissioner
1993
1 - RESOLUTION NO. 93-109 (11/24/93)
l..\OFIL' ",IED,
Exhibit "A" to Resolution No. 93-109 U128'w0'798
STANDARDS AND GUIDELINES FOR PROCESSING APPLICATIONS
FOR NEW LOW-INCOME RENTAL HOUSING LOCAL PROPERTY TAX
EXEMPTION UNDER ORS 307.515 TO ORS 307.537
ADMINISTRATIVE PROCESS
For purposes of these rules, the following words and phrases
mean:
Board. The Board of County Commissioners of Deschutes County,
Oregon, or its designee.
Low -Income. Income at or below 60 percent of the area median
income as determined by the State Housing Council based on
information from the United States Department of Housing and Urban
Development.
Low -Income Rental Housing. Rental housing constructed after
December 1, 1993 which is occupied by low-income persons.
1. Statement of Program Purpose. The purpose of the low-
income rental housing local property tax exemption program is to
provide an incentive that will encourage construction of new rental
housing for low-income persons.
2. Eligible Property. To be eligible for local property tax
exemption hereunder:
2.1 The property must be offered for rent;
2.2 The property, or portion thereof subject to the
property tax exemption, must be occupied solely by low-
income persons;
2.3 The required rent payment must reflect the full
value of the property tax exemption;
2.4 The housing units on the property must be
constructed after December 1, 1993;
2.5 The property owner must agree to comply with the
policies set forth in Section 5 of these Standards and
Guidelines;
2.6 The proposed development must be consistent with
the County's Comprehensive Land Use Plan;
2.7 The proposed development will not cause
displacement of low-income persons unless the County and
developer can reach agreement on provisions (to be provided
by the developer) that reflect satisfactory mitigation
thereof;
1 - EXHIBIT "A" TO RESOLUTION NO. 93-109 (11/24/93)
0128;0799
2.8 The proposed development will not cause
destruction of historic properties except:
2.8.1 Where the historic property is relocated
in a manner which preserves its historic
characteristics, or
2.8.2 The property is granted an exception by
the county;
2.9 The proposed development will be otherwise
consistent with provisions of the Deschutes County Code, and
adopted County regulations and policies; and
2.10 As an alternative to the criteria set forth in
subsections 2.1, 2.2, 2.3 and 2.4 of this section, an
application shall be approved if it meets the criteria in
subsections 2.5, 2.6, 2.7, 2.8 and 2.9 of this section and
all of the following criteria:
2.10.1 If unoccupied, the property is offered for
rental solely as a residence for low-income persons;
2.10.2 If occupied, the property is occupied
solely as a residence for low-income persons;
2.10.3 The applicant's application was filed
prior to July 1, 2000;
2.10.4 The property is owned or being purchased
by a nonprofit corporation organized in a manner that
meets the criteria for a public benefit corporation, as
described under ORS 65.001(31) or for a religious
corporation, as described under ORS 65.001(33); and
2.10.5 The property is owned or being purchased
by a nonprofit corporation that expends no more than
ten percent of its annual income from residential
rentals for purposes other than acquisition,
maintenance or repair of residential rental property
for low-income persons.
3. Application for Exemption. Prior to December 1 of the
calendar year immediately preceding the first tax year for which
the exemption is requested, or, if the property is acquired after
November 1, within 30 days of the date of acquisition, but no
later than January 1 of the next calendar year, the applicant
shall submit to the Board application for exemption, containing
the following information:
3.1 A description of the property or portion thereof,
for which the exemption is requested;
3.2 A description of the purpose of the project and
whether all or a portion of the property will be used for
2 - EXHIBIT "A" TO RESOLUTION NO. 93-109 (11/24/93)
0128-0800
that purpose;
3.3 A certification of the income levels of low-income
occupants, if the property is occupied;
3.4 A description of how the tax exemption will
benefit project occupants;
3.5 Evidence that, if unoccupied, the property is, or
will be, offered for rental solely as a residence for low-
income persons;
3.6 If the exemption is sought under the alternative
criteria of §2.10, evidence that, if occupied, the property
is occupied solely as a residence for low-income persons;
3.7 If the exemption is sought under the alternative
criteria of 52.10, evidence that the property is owned or
being purchased by a nonprofit corporation which meets the
criteria for a public benefit corporation as described in
ORS 65.001(31), or a religious corporation, as described in
ORS 65.001(33);
3.8 If the exemption is sought under the alternative
criteria of 52.10, evidence that the nonprofit corporation
expends no more than ten percent of its annual income from
residential rentals for purposes other than acquisition,
maintenance or repair of residential rental property for
low-income persons; and
3.9 Any other information required by the Board.
The application shall be verified by oath or affirmation of
the applicant and submitted with an application and processing
fee to be set pursuant to Chapter 4.12 Deschutes County Code,
which shall include therein the fee to be paid to the County
Assessor by the County as the County's agreed processing fee for
those applications receiving County approval. The amount of the
basis fee shall be prominently displayed on the application,
together with a statement that the applicant may be required to
pay other reasonable costs, including appraisal costs, if any,
are incurred by the County in processing the application. Any
additional costs shall be paid to the County by the applicant
prior to the granting of any final approval. In the event an
application is denied, the portion of the fee reserved for the
County Assessor will be refunded to the applicant by the County.
An application which does not contain all the required
information and is not accompanied by the required fee shall be
returned to the applicant. Any application returned for these
reasons shall be deemed not to have been filed. The Board may
waive fees upon finding that it is in the public interest to do
SO.
4. Duration of Tax Exemption. Exemption from ad valorem
taxes, excluding taxes on land or any improvements not a part of
3 - EXHIBIT "A" TO RESOLUTION NO. 93-109 (11/24/93)
01280801
the newly -constructed low-income rental housing, shall be granted
for no more than twenty successive years.
5. Policies. In addition to the criteria set forth above,
the applicant must demonstrate compliance with the following
policies in order to be eligible for a property tax exemption
hereunder:
5.1 Rent Regulatory Agreement. The owner must agree
to execute and maintain in effect for the duration of the
tax exemption period, a Rent Regulatory Agreement in a form
approved by the County, and which contains, but is not
limited to, provisions establishing regular reporting
requirements and periodic inspection periods, and
demonstrates that the required rent payment reflects the
full value of the property tax exemption.
5.2 Inspection of Premises. The owner must consent in
writing that for the duration of the tax exemption period
the County may inspect the property for which the exemption
is granted at reasonable times, without prior notice to
insure that the premises are naintained in decent, safe and
sanitary conditions for the occupants.
6. Recommendations on Applications. Upon receipt of an
application for property tax exemption hereunder, the Board
shall:
6.1 Review the application and all supportive material
to verify that the applicant has provided the information
required and paid the required fee. The Board shall promptly
notify the applicant of any omissions.
6.2 Solicit recommendations or comments from any
recognized neighborhood group if the property is located
within the recognized neighborhood groups' boundaries, other
interested County departments and agencies. Within 20 days
of forwarding of referrals, written comments shall be
submitted to the Board by the agencies, departments and
groups to whom referral is made. Failure to respond within
20 days will be deemed approval of the proposal as
submitted.
6.3 If necessary to address comments or
recommendations received, establish a meeting with the
applicant, or the applicant's authorized representative to
review the application.
6.4 Within 30 days from the date the application is
filed, forward his or her recommendation to the County that
the application be denied, approved, or approved subject to
conditions. The recommendation shall be based upon and
contain findings of compliance or non-compliance with these
Standards and Guidelines, the Deschutes County Code, County
resolutions, ordinances and adopted policies, and applicable
4 - EXHIBIT "A" TO RESOLUTION NO. 93-109 (11/24/93)
0128-w0802
State statutes, that support his or her recommendation.
7. Amendments to Guidelines. The Board may, from time to
time, propose such revisions, deletions, or amendments to these
Standards and Guidelines as it deems necessary or desirable for
the efficient implementation of the low-income rental housing
local property tax exemption program, but no such revision,
deletion, or amendment shall be effective until approved by
County Resolution.
DATED this ✓? day of, 1993.
E
Recording Secretary
BOARD OF1 COUNTY COMMISSIONERS
OF DES TES COUNTY, OREGON
N Y POP 'SC GEN. Commissioner
BARRY H. SLAUGHTEA, Commissioner
5 - EXHIBIT "A" TO RESOLUTION NO. 93-109 (11/24/93)