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The City of Portland ordains:

Section 1.  The Council finds:

1. On behalf of the City of Portland, the Portland Housing Bureau (“PHB”) administers the Multiple-Unit Limited Tax Exemption Program (the “MULTE Program” or “Program”), authorized under ORS 307.600-307.637 and City Code Chapter 3.103.

2. The MULTE Program provides a 10-year limited property tax exemption on the residential portion of the structural improvements so long as Program requirements are met. During the exemption period, property owners remain responsible for the payment of taxes on the assessed value of the land and any commercial portions of the project, except for those commercial improvements deemed a public benefit and approved for the exemption.

3. The MULTE Program’s ten-year limited property tax exemption serves as an incentive to developments complying with the Inclusionary Housing (“IH”) Program, which requires 99 years of restricted rents since its implementation on February 1, 2017. Prior to IH, the MULTE Program was available to property owners voluntarily restricting at least 20 percent of residential units to households earning no more than 60 or 80 percent of Median Family Income (“MFI”) for a period of ten years in exchange for a ten-year limited property tax exemption.

4. On March 21, 2012, The 41 at Tillamook LLC (“Owner”) applied for a ten-year limited property tax exemption for an apartment building known as The 41 at Tillamook (the “Project”) and located at 4110 NE Tillamook St (the “Property”) under the Transit Oriented Development (“TOD”) Program, which was authorized under ORS 307.600-307.637 and City Code Chapter 3.103. City Council approved the application through Ordinance 185214 on March 21, 2012. The Project, located in the Hollywood neighborhood is a residential only housing project restricting 10 units, which is 20 percent of its 47 housing units, to households earning no more than 60 percent of MFI (the “MULTE Units”).

5. In 2012, the TOD Program was combined with the New Multi-Unit Housing Program to become the MULTE Program.

6. On May 10, 2023, City Council approved offering extensions for projects who received property tax exemptions under the MULTE Program, including previous versions, prior to the IH Program, that restrict affordability at 60 percent of MFI. The extension available to these buildings built within the last 15 years are not covered under state tenant protections limiting rent increases.

7. On August 21, 2023, PHB received a request from the Owner for a five-year extension to the limited property tax exemption in effect for the Project under the MULTE Program.

8. PHB has the responsibility for reviewing compliance of applications with the minimum MULTE Program requirements and has concluded that the application for the Project does indeed meet the minimum Program requirements for an extension.

NOW, THEREFORE, the Council directs:

1. The request for a five-year extension of the limited property tax exemption under the MULTE Program is hereby approved for 100 percent of the residential portion of the structural improvements of The 41 at Tillamook, including 100 percent of residential parking and common areas.
2. Approval of the application is provided subject to the Project meeting the following conditions:
   1. The Project must continue to restrict 20 percent of its 47 residential units to households earning no more than 60 percent of MFI for an additional five years beyond the initial ten years. The MULTE Units will reflect the unit-mix in the Project.                         
   2. The application will comply with the Program requirements established in City Code Chapter 3.103, including the requirement that the Owner sign a Regulatory Agreement and report annually to PHB each tax year that the exemption and restrictions are in effect.
3. PHB shall provide a copy of this Ordinance to the Multnomah County Tax Assessor as prescribed by City Code Section 3.103.050 (A).

Section 2.  The Council declares an emergency exists because timely City approval of the application for the MULTE Program is necessary in order to extend the limited property tax exemption for The 41 at Tillamook prior to July 1, 2024, when the exemption expires; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.