2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 307 - Property Subject to Taxation; Exemptions › Section 307.857 - Application for exemption; partial exemption computations; review; certification; fees.

(1) Following the designation of a vertical housing development zone under ORS 307.844, a person proposing to undertake a proposed vertical housing development project and seeking the partial property tax exemption set forth in ORS 307.864 must apply to the governing body of the city or county that designated the zone for certification of the project. Each phase of a phased development, whether vertical or horizontal, requires a separate application.
(2) The application must be satisfactory to the city or county in form and content and must contain any information required by the city or county, including all of the following:
(a) The address and boundaries of the proposed vertical housing development project.
(b) A description of the existing state of the property.
(c) A description of the proposed project construction or rehabilitation, including the design of the construction or rehabilitation, the cost of the construction or rehabilitation and the number of floors and residential units to be constructed or rehabilitated.
(d) A description of the nonresidential uses to which any portion of the proposed project is to be put, including the proportion of total square footage of the project proposed for nonresidential uses.
(e) A description of the proposed portion of the project to be used for residential uses, including the proportion of total square footage of the project proposed for residential uses.
(f) A description of the number and nature of residential units in the proposed project that are to be low income residential housing, including the proportion of total square footage of the project proposed for low income residential housing uses.
(g) The computations made under subsection (4) of this section.
(h) Documentation establishing the costs of construction and rehabilitation with respect to the project.
(i) A commitment that is satisfactory to the city or county, including documentation and evidence of recording of the documentation, that the project will be maintained and operated in a manner consistent with the application submitted under this section for the duration of the commitment. The duration of the commitment, including the eligibility of units in the project as low income residential housing, may not be less than the number of tax years for which the project is intended to be partially exempt from ad valorem property taxes under ORS 307.864.
(3) For purposes of this section, square footage does not include areas used for parking, patios or porches, unless these areas are demonstrated to the satisfaction of the city or county to be economically necessary to the project or the city or county otherwise determines that it is appropriate to include the areas in square footage.
(4) Each application filed under this section must contain the results of the following computations:
(a) The average floor area of a project equals the total square footage of the project divided by the number of floors of the project that are at least 500 square feet in area. The minimum area of the floors in the divisor may be increased or otherwise qualified by the city or county by rule.
(b) For purposes of determining the partial exemption under ORS 307.864, the exemption multiplier for square footage dedicated to residential uses shall be determined by dividing the total square footage dedicated to residential uses in the project by the average floor area of the project determined under paragraph (a) of this subsection, without rounding this quotient up or down.
(c)(A) For purposes of determining the partial exemption under ORS 307.864, the exemption multiplier for square footage dedicated to low income residential housing shall be determined by dividing the total square footage dedicated to low income residential housing in the project by the average floor area of the project determined under paragraph (a) of this subsection, without rounding this quotient up or down.
(B) For purposes of the computation made under this paragraph, the square footage dedicated to low income residential housing shall include that proportion of the total square footage of residential common space in the project that equals the proportion of the total square footage of low income residential housing units in the project to the total square footage of all residential housing units in the project.
(d) Land that is necessary for a project for which the exemption multiplier determined under paragraph (c) of this subsection equals at least 1.0 shall be certified for partial exemption using the same exemption multiplier as is used for the property of the project. Land that is not necessary for a project may not be certified for partial exemption.
(5)(a) For rehabilitation that does not involve displacement of tenants, the application must be filed on or before the date on which the rehabilitation is complete.
(b) The application must be filed on or before the date on which residential units that are a part of the vertical housing development project are ready for occupancy.
(6) The city or county shall review each application submitted under this section and shall certify or deny certification based on whether the proposed vertical housing development project meets the requirements described in ORS 307.858 and all criteria established by the city or county that are consistent with ORS 307.841 to 307.867.
(7) The city or county may request any documentation or undertake any investigation necessary to ascertain the veracity of any statement made on an application under this section.
(8) The certification issued by the city or county must:
(a) Identify the property included in the certified vertical housing development project;
(b) Identify the exemption multiplier based on the square footage in the project dedicated to residential uses as computed under subsection (4)(b) of this section and include a description of the property so dedicated;
(c) Identify the exemption multiplier based on the square footage in the project dedicated to low income residential housing as computed under subsection (4)(c) of this section and include a description of the property so dedicated; and
(d) Contain any other information prescribed by the city or county.
(9) The determination of the city or county to certify or deny certification is a discretionary determination. The determination is final and is not subject to judicial or administrative review.
(10) The city or county may charge appropriate fees to offset the cost of administering the application and certification process under this section and any other related costs. [Formerly 285C.465; 2017 c.326 §6; 2021 c.476 §2]
Note:
Section 13, chapter 326, Oregon Laws 2017, provides:
Sec. 13.
(1) Property that was constructed pursuant to a certification for a partial property tax exemption under ORS 307.857 prior to the effective date of this 2017 Act [October 6, 2017] shall continue to receive the exemption according to the same schedule and subject to the disqualification provisions of ORS 307.841 to 307.867 that were in effect and applied at the time the vertical housing development project was certified for partial property tax exemption.
(2) If an application for certification was filed with the Housing and Community Services Department prior to the effective date of this 2017 Act but not acted upon as of the effective date of this 2017 Act, the Housing and Community Services Department shall forward the application to the city or county, as applicable. [2017 c.326 §13]