Annual cap – PHB will approve no more than $3 million of projects’ estimated foregone revenue for the first year of the exemption annually. The exemption amount is calculated based on the projects’ total projected value upon completion. The number of projects and units approved will depend on estimates of total foregone revenue. Properties located in eligible areas within Urban Renewal Areas are exempt from the cap.
Timing of application – Applications must be submitted and approved prior to issuance of the project’s building permit and prior to announcing bids for sub-contracting. Applications for extensions must be submitted prior to the exemption expiring.
Pre-application meeting – Prior to applying, applicants need to contact the MULTE Program Coordinator, who will schedule a two-hour pre-application meeting to be held within 20 business days and include the development team and general contractor representatives, and PHB Senior Construction Coordinator, Asset Management Program Coordinator or Specialist and MULTE Program Coordinator.
MWESB contracting – Applicants must consult with PHB staff and a third party technical assistance provider prior to opening up bidding for the construction and prior to application for the MULTE. The MULTE application must include a description of strategies identified in coordination with the technical assistance provider that will be employed to promote Minority, Women, and Emerging Small Businesses (MWESB) in construction contracting. The contractor must work with the City of Portland’s Procurement Services Compliance Specialist to report results.
Lease-up strategy – Applicants must consult with PHB staff to identify an intended target population for lease-up of the project. Applicants must commit to using PHB’s prescribed lease-up strategies, which may include but is not limited to partnerships with community organizations, listing available units on Housing Connections website, accepting Rent Well certificates, and acceptance of appeals of both conditional approvals and denials.
Neighborhood Contact Process – MULTE applicants are required to participate in the Neighborhood Contact Process prior to applying for the building permit and tax exemption program.
Application requirements – Complete applications include the application processing fee, PHB Application Form, a project narrative, financial information and supporting documentation, plus any additional project specific documentation, as described below:
1. Application processing fee in the amount of $1,000 – checks should be made payable to PHB;
2. PHB Application Form including:
- a. Applicant’s signature verifying oath or affirmation and date;
- b. Number, size, and type of dwelling units and key design elements;
- c. Dimensions of the multiple-unit structure(s), parcel size, proposed lot coverage of building, and amount of open space;
- d. Type of project (preservation, rehabilitation, conversion, and/or new construction; rental or for-sale);
- e. Number of residential and commercial off-street parking spaces;
- f. Parking and circulation plan;
- g. Proposed amount of floor area dedicated to residential, residential common, and non-residential uses;
- h. Description of the existing use of the property, including if appropriate a justification for the elimination of existing sound and rehabilitable housing;
- i. Project schedule; and
- j. Rent schedule (or expected purchase prices.)
3. Project narrative with the following sections:
a. Project description – project location, neighborhood characteristics and any resident services;
b. Pedestrian design elements and connection to transit;
c. Description of how the project will meet the MULTE Program’s Equity, Accessibility and Affordability requirements;
d. Definition of the ownership structure of the development project and declaration of any mutual identity of interest between the applicant and the construction contractor or property management company.
4. Financial information (for rental projects only) – Excel spreadsheet(s) to be submitted electronically/”live” (not PDF):
a. Pro forma development budget (detailed project costs);
b. Pro forma Sources and Uses;
c. Three different 15 year pro forma operating cash flow scenarios (income and expense analyses)
i. Scenario 1, affordable units, without the exemption – demonstrate the 10 year average cash on cash return;
ii. Scenario 2, with the exemption – demonstrate the 10 year average cash on cash return; and
iii. Scenario 3, showing the necessary increase in unit rents (from scenario 1) to achieve the same cash on cash return as with the exemption (scenario 2);
d. Rent structure (or expected purchase price) by unit type (affordable units to be net of utility allowance). If the rent structure has varying rents within unit types (e.g. multiple rent levels for 1 bedroom), include a roll up of total count by unit type;
e. Breakdown of the applicable utility costs payable by the tenants for the different unit types as determined from the Schedule of Utility Allowances;
f. Demonstration of how real estate taxes without the exemption were determined;
g. Demonstration of each component of developer equity including invested cash and any deferred fees; and
h. Economic feasibility, market analysis, or evidence of cost comparisons when appropriate.
5. Supporting documentation:
a. Conceptual site plan and supporting maps (drawn to a minimum scale of one inch equal to 16 feet, or a scale suitable for reproduction on 8-1/2" by 11" paper, showing the development plan of the entire project including streets, driveways, sidewalks, pedestrian ways, off street parking, loading areas, location, design, and dimension of structures, use of land and structure(s), major landscaping);
b. Documentation of Neighborhood Contact process – copies of letters sent to the area neighborhood association and district neighborhood coalition along with copies of the certified or registered mail receipts.
c. Documentation of site control and supporting materials: property tax printout for all parcels, showing tax account numbers and legal descriptions (include copy of deed to document ownership or full legal description if necessary);
d. Copy of the market study provided to the senior lender for the project; and
e. Legal articles of entity who will receive the exemption (Identifying signature block).
6. Additional information – Such other information required by state or local law or otherwise which is reasonably necessary.