A consortium of local governments is seeking public input on plans for affordable housing and community economic development.Read More…
421 SW 6th Avenue, Suite 500, Portland, OR 97204
The Portland Housing Bureau (PHB) administers the Limited Tax Exemption (LTE) programs on behalf of the City of Portland. The LTE programs support affordable housing and leverage private housing development to advance the City’s housing and economic prosperity goals in a time of declining resources and limited availability of public subsidy. Property tax exemptions provide a financial incentive for affordable housing by reducing the property taxes owed on a property.
This report covers and provides data on program activity during Fiscal Year 2012-13, and estimates how that activity will affect property tax revenues for Tax Year 2013-14. Overall, the approximately 14,000 units currently receiving tax exemptions amount to roughly $18 million of foregone revenue to the City of Portland, Multnomah County, area school districts and other taxing jurisdictions for the year. Of the total 14,000 units, roughly 9,600 receive exemptions through the Non-Profit LTE program equaling close to $11 million in foregone revenue. The total foregone property tax revenue increased from an estimated $16 million in Tax Year 2012-13 to an expected $18 million in Tax Year 2013-14, largely due to the slight increase in property values and additional rental units approved for tax exemptions. The net additional foregone revenue as a result of the LTE programs for the year after accounting for the number of units with exemptions ending is actually only about $200,000. The number of homeownership units with tax exemptions has decreased, largely due to the number of units with expiring exemptions but also because of increased compliance m