Housing Services:
Transit Oriented Development (TOD) Property Tax Abatement Guidelines


On November 13, 2006 the Portland City Council took final action on changes to the City's TOD Exemption Program.

For More Information

Learn about the process underway to review city policies on tax abatement programs.


Purpose

The Transit Oriented Development (TOD) Property Tax Abatement was established to support high density housing and Mixed-Use developments affordable to a broad range of the general public on vacant or underutilized sites along transit corridors whose design and features encourage building occupants to use public transit. The exemptions support TOD projects by reducing operating costs through a ten-year maximum property tax exemption.

Product Description

Projects that receive a TOD will be exempt from property taxation on the residential improvements for up to ten consecutive years, beginning January 1 of the year immediately following the calendar year in which construction is completed. The exemption applies to the residential portion of a project or to non-residential components that provide public benefits as detailed in the product specific guidelines below. The exemption does not include the value of the land, nor any improvements that do not provide a public benefit. Project Sponsors of projects receiving this exemption will be required to sign legal documents, including Affordability Agreements and real estate covenants. Please note that this is a summary of City Code requirements and may not be exhaustive. For additional information or clarification, please see Portland City Code 3.103.

Minimum Qualifications

Project Sponsors that meet all of the following minimum qualifications may be eligible for the TOD Exemption:

  1. Projects must be newly constructed structures, additions to existing structures or conversion of existing non-residential property to housing.
  2. Project Sponsor must own or have site control of the project site.
  3. Project Sponsor must demonstrate that the property tax exemption is necessary to make the project financially feasible.
  4. The proposed project must satisfy the goals of the TOD ordinance.
  5. The project must be located within certain designated areas of the City of Portland.

Fees

Project Owners or Sponsors must pay a $5,000, non-refundable application fee at time of application submittal plus any applicable fee required by Multnomah County.

Contacts

For further information, please contact PDC at (503) 823-3270 or e-mail.

Product Specific Guidelines

City Council has updated the City’s New Transit Supportive Residential or Mixed Use Development (TOD) program which provides incentive for new multifamily and mixed-use development near where transit-oriented development is planned.

A summary of the adopted changes follows:

Adopted Changes to the Program’s Regulations

Adopted Changes to the Program Boundaries

If you would like more information on these changes, please contact Barbara Sack at 503-823-7853. The full memo is listed below under publications.

How to Access Exemption

  1. Pre-Application Meeting: The TOD tax exemption applications may be submitted at any time during the year. For consideration under the program, applicants must submit a completed TOD application. A pre-application meeting must be scheduled by the Project Sponsor to review the preliminary materials and documentation that addresses the application requirements, prior to the formal application. To request a pre-application meeting, the Project Sponsor forwards preliminary materials to the PDC with a request for a pre-application meeting. PDC staff will then review the materials and inform other affected/interested bureaus (particularly the Bureau of Transportation and the Bureau of Planning and Design Review) of the pending application. At the pre-application meeting, the PDC reviews the application process with the Project Sponsor, discusses the project and relays feedback from the City bureaus about the project. After the meeting, the PDC provides the Project Sponsor with a summary of the pre-application meeting and recommendations for completing the application.

  2. Program Review: The Project Sponsor reviews program materials and prepares schematic drawings with a descriptive statement about the proposed development.

  3. Application Submittal: The Project Sponsor must submit the completed application, with sufficient project detail and information for the PDC to prepare a report and recommendation to the Portland City Council for action. The application fee must accompany the application. The PDC may reject incomplete applications and will notify the applicant as such.

  4. Project Briefings: The Project Sponsor briefs affected neighborhood residents and business associations on the project.

  5. Application Review: The PDC reviews the project and confers with other interested/affected City bureaus. Outstanding issues are clarified and resolved with Project Sponsor. The project review includes a review of the project design, by the PDC and, at PDC's request, other City bureaus. The project must be res ponsive to the relevant public benefits, plan policies and transit oriented design features applicable to the project. The Project Sponsor, the PDC and, if applicable, other City Bureaus, resolve any design issues and agree on the final design of the project.

  6. Approval Recommendation: PDC prepares a recommendation to the City Council approving the project (reports and recommendations are made available at least 14 days prior to the scheduled City Council hearing).

  7. Public Hearing: The City Council reviews and either approves or denies the application.

  8. Resolution: An exemption is approved by City Council resolution and a copy of the resolution is provided to the Project Sponsor and the Multnomah County Assessor.

  9. Exemption Begins: Upon successful approval, the completed project will be exempt from property taxation for up to ten consecutive years beginning January 1 of the year immediately following the calendar year in which construction of the project is completed.

Publications

   To be eligible for the TOD Exemption, the site must be located within the boundaries of one of the following transit areas:



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