Last month, the Eugene City Council approved five tax exemptions to support affordable housing projects.
The Low-Income Rental Housing Property Tax Exemption program, also known as LIRHPTE, has been a tool for getting affordable housing built and maintained since 1990.
Laura Hammond, housing analyst with the City of Eugene, says over the years, more than 43 affordable housing developments have been built with LIRHPTE.
Hammond said housing is one of the biggest priorities for Eugene residents.
“They’ve said that in surveys over and over again,” she said. “And it’s a strategic goal for our council and for our organization to stabilize the cost of housing. So, I think that helps make the LIRHPTE make sense in a lot of ways knowing that we are giving up some of that property tax, but it’s going toward keeping people in homes.”
The program is a partnership between the city and the 4J and Bethel school districts.
It provides a 20-year property tax exemption for rental housing for households that earn at or below 60% of area median income.
Hammond said to meet requirements for the program, rents have to be at a rate of no more than 30% of what a household earns.
For example, a two-bedroom apartment rent is capped at around $1,200.
Because it's a tax exemption, it has to be approved by more than 50% of the taxing district. That’s why local school districts are involved.
There are conditions that require developers to show the tax exemption goes toward lower rents.
The most recent projects approved for the exemption include:
- Apple Orchard Village Apartments (Cornerstone Community Housing): Renewal for a 40-unit affordable housing development, preserving affordable rents.
- Santa Clara Place (St. Vincent de Paul of Lane County): Renewal for a 59-unit affordable housing development, preserving affordable rents.
- Laurel Hill Center River Road (Laurel Hill Center): Future development of at least 35 affordable housing units.
- River Road Apartments (Cascade Housing Association): Future development of 47 affordable housing units.
- Whiteaker Commons (Red Apple Square LLC): Future development of at least 110 affordable housing units.
For more information about the LIRHPTE and other local efforts to create stable, safe, and affordable housing opportunities in Eugene visit the city’s website.
