Housing Services:
Single Family New Construction Tax Abatement Guidelines

After January 1, 2008:

The builder must submit the Application for Determination of Eligibility (ADE), along with a $150 application fees, and receive PDC approval of the ADE prior to completion of construction of the unit. Completion of Construction is determined as the date on the “Final OK to Occupy Permit” issued by the City of Portland**.
The property must be located within a Homebuyer Opportunity Area at the time the ADE is approved.
The home constructed on the property must be a single-family home or condominium.
Construction must be completed within two years from the date of PDC approval of the ADE.
Builder must sign an agreement with PDC outlining the terms of the abatement which will be recorded against the property.

Approval of the Homebuyer

Homebuyer must be the initial buyer of the property and must occupy the property as their primary residence.
Homeowner must submit a completed Application for Certificate of Qualification (ACQ) along with all required supporting documents and a $150 fee (plus a $450 fee to the County within 90 days of purchase of the property. Date of purchase is defined as the date the Warranty Deed or other title transfer document is recorded with the Multnomah County Recorders office.
The sales price (or appraised value if an owner/builder) must be no greater than $275,000 (2007 maximum, annually adjusted by the Planning Bureau.)
The total annual income of all deed holders/borrowers occupying the home cannot exceed HUD $67,500 (income maximum is adjusted for family size over 4).
After completion and sale of the unit to the initial eligible buyer, the property must be owner-occupied for the remaining term of the abatement.

How to Apply for the LTA

Builder

Prior to completion of construction of the unit, the builder must complete the ADE and pay PDC a non-refundable application fee of $150.

Buyer

Within 90 days of purchase, the buyer must submit the ACQ, pay PDC a non-refundable application fee of $150, plus any applicable County fee, and provide copies of the following supporting documentation:
Warranty Deed,
Final HUD-1 Settlement Statement,
Verification of income for all deed holders or borrower regardless of whether they will occupy the unit, either:
- Most recent W-2(s) and current 30-day pay stub(s),
- If self–employed, copies of the past two years signed tax returns and a current profit and loss statement and ,
Final building permit “Final OK to Occupy Permit”

If the property is ever sold to an ineligible buyer, PDC will terminate the abatement in accordance with required City Code and State Statute and then notify Multnomah County Tax Assessor to terminate the abatement. As a result, the property and future buyers are no longer eligible for abatement.

Application materials are available below or by contacting PDC's Limited Tax Abatement program specialist. Mail required applications materials to:

Limited Tax Abatement Program Specialist
Portland Development Commission
222 NW Fifth Ave.
Portland, OR 97209-3859
(503) 823-3270 Phone
(503) 865-3737 Fax
e-mail

**Determining the Age of Your Home (Final Building Permit date)
You may find your home's Final Building Permit date by visiting PortlandMaps.com, under the "Property" and "Permits" tab, or by calling the Bureau of Development Services and requesting a copy of your home’s building permit at (503) 823-7660.

Developers: are you aware of the System Development Charge Exemption Programs for the City of Portland's Transportation, Bureau of Environmental Services (BES), Water and Parks Bureaus? Please contact the Program Administrator at (503) 823-3270 for more information. Non-profits should also ask about the Development Fee Waiver program.