Housing Services:
New Multiple-unit Housing (NMUH)/ Central City Property Tax Abatement Guidelines

Revisions to New Multiple-unit Housing (NMUH)/ Central City Tax Abatement

The City’s multifamily tax exemption programs are under review again and some new concepts are being considered. The goal of this review is to provide the City Council and Planning Commission with recommendations for program changes that respond to the concerns expressed by the City Council. The proposed program changes should also ensure the programs are effective in providing a true incentive for the types of development that will allow Portland to grow in a sustainable fashion.

The NMUH and Transit Oriented Development (TOD) Programs

The City’s two multifamily programs for targeted areas of the City are the New Multiple-Unit Housing (NMUH) and Transit Supportive and Residential Development (TOD) programs. Both provide a 10-year tax exemption on the improvement value of a new multifamily or mixed-use project. The NMUH program is available in the Central City and urban renewal areas (URAs). The TOD program is available in light rail station areas outside the Central City, the Gateway Regional Center, the Hollywood and Lents Town Centers, and the Northwest plan district. These programs are intended to provide an incentive for high-density residential and mixed-use development in Portland’s centers and other transit-oriented areas so that the City can accommodate new population growth, improve the housing-jobs balance, and support public transit, particularly the regional light rail system.

The Moratorium on New NMUH Applications

Since October 19, 2005, there has been a moratorium on accepting new applications for the NMUH program. Commissioner Sten asked for a moratorium after City Council failed to reach consensus on a NMUH application for a rental housing project in South Waterfront. Council expressed concerns about foregone revenue and housing unit affordability, size, and suitability for families. The Planning Commission had also expressed similar concerns in their review of the application. The purpose of the moratorium is to review the program requirements and to make changes that will reflect an agreement on the program’s objectives. The TOD program has been less controversial than the NMUH program and is not under a moratorium. It is, however, a very similar program and is included in this review.

Publications

The documents listed below are related to the process currently underway to revise the Limited Tax Abatement (LTA) program for the City of Portland. The program impacts both the Transit Oriented Development (TOD) and the New Multi-unit Housing (NMUH) programs. (All documents posted are in Adobe .pdf format)

Original Resolution Establishing the Moratorium on the New Multiple Unit Housing Tax Exemption Program.

• NMUH/LTA Ordinance

Resolution extending the moratorium to December 2007.

• Ordinance Extension

These three items were presented at the Portland City Council/PDC Joint Worksession on Jan 11, 2006.

• Limited Tax Abatement presentation
• Summary of City Housing Policy
• LTA Worksession Notes

This update was presented to the Planning Commission on March 14, 2006 and to the Portland Development Commission on March 26, 2006.

• Planning Commission Update

The following information was presented to a range of stakeholders at the noted meetings in April and May. Participants reviewed and gave input on the program concepts for a new or different multifamily tax exemption program. The concepts and public input are summarized in the following documents.

• Developers Roundtable presentation
• NMUH Program Concepts
• Potential Program Area map
• Public Comments (Appendix 5)

Hearing on changes to the Transit Oriented Development (TOD) Tax Exemption Program were held on June 27, 2006.

At this hearing, the Planning Commission approved the staff proposal with minor changes. The Planning Commission will now recommend the program changes to the City Council at a data and time to be determined.

• TOD Final Report to Planning Commission
  
  On November 1, 2006 at 10:30 AM, the Portland City Council will be considering the Planning Commission's recommendations for changes to the TOD Tax Exemption program.

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