In order to be considered for an exemption under this Chapter, an applicant must verify by oath or affirmation in the application that the project meets the following minimum threshold requirements:
A. Financial need for the exemption
1. Rental projects
a. The project would not otherwise be financially feasible without the benefit provided by the property tax exemption.
b. The applicant must submit proof that the anticipated internal rate of return for the project for the period of the exemption will not exceed 10 percent.
2. For-sale projects
a. Units receiving tax exemption will be sold to buyers meeting the affordability requirements contained in this Section.
B. Property eligibility
1. Projects must be located within identified Designated Plan Areas/Metro 2040 Centers, within a quarter mile radius of Max Station Areas, or within a quarter mile from either Metro 2040 Corridors with Frequent Transit Service or Metro 2040 Main Streets with Transit Service within the City ofPortland.
2. Projects must conform to City ofPortland’s zoning and density requirements.
3. Applications for tax exemption must be submitted and approved prior to application for the project’s building permit.
1. For rental projects, during the term of the exemption, a minimum of 20 percent of the number of units must be affordable to households earning 60 percent or less of the area median family income, with possible allowance to have units affordable to households earning 80 percent or less of the area median family income based on the market for similar units in the same geographic area. The units meeting the affordability requirements must match the unit mix in the project as a whole in terms of number of bedrooms.
2. For projects containing for-sale units, those units receiving the exemption must not exceed the maximum price established under City Code Section 3.102.040 at initial sale and must sell to an initial homebuyer who income qualifies and occupies the unit as established under City Code Section 3.102.040. During the term of the exemption, the unit must be occupied by a homebuyer as established under City Code Section 3.102.040.
1. Applicants must provide a plan to meet Portland Housing Bureau’s business equity goals for participation of Minority, Women, and Emerging Small Businesses (MWESB) in professional services and construction contracting and City workforce training and hiring goals.
2. Applicants must describe their efforts to engage community stakeholders and integrate feedback in the project concept plan, including but not limited to: neighborhood impacts, plan for commercial tenants, the use of gathering and commercial space in the project, and outreach and marketing of residential units to target markets.
E. GreenBuilding. The project must be built to meet healthy and energy efficient environmental building standards.