421 SW 6th Avenue, Suite 500, Portland, OR 97204
The first three buildings permitted under the City’s new Inclusionary Housing policy received City Council approval yesterday for affordable housing tax exemptions. Portland’s Inclusionary Housing policy, which went into effect in February, requires new residential buildings lease a percentage of their units at rents affordable to households at 80 percent of the area median income, or pay a fee-in-lieu to fund future affordable housing development.
The three projects, which are planned for the Woodstock, Mt. Tabor, and Buckman neighborhoods, will receive 10-year tax exemptions and will be providing affordable units within their buildings for 99 years. Altogether, they will create 170 new units of housing, 23 of which will be affordable to households between 60 – 80 percent of the area median income (currently $40,380 - $53,800 a year for a family of three).
“Launching inclusionary housing with more than 20 affordable new units in three of our great Southeast neighborhoods is great first step,” said Mayor Ted Wheeler. “Moving forward, we have a framework in place to ensure that growth benefits the people who live and work here.”
The Multiple-Unit Limited Tax Exemption program (MULTE) is one of the financial incentives provided to Inclusionary Housing projects providing affordable units, in addition to exemption of the Affordable Housing Construction Excise Tax, and for projects providing units affordable at 60 percent of area median income or below, exemption of the System Development Charges.