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Label:
Resolution
WHEREAS, in 1991, the Oregon Legislature passed legislation allowing local jurisdictions to forgo a portion of property tax revenue for a defined period of time as an incentive for the development of housing that achieves larger City affordable housing policy goals; and
WHEREAS, on behalf of the City of Portland, the Portland Housing Bureau administers the Homebuyer Opportunity Limited Tax Exemption (HOLTE) Program, authorized under ORS 307.651 to 307.687 and Portland City Code 3.102; and
WHEREAS, Portland City Council is required by ORS 307.661 to establish annually by Resolution the sale price cap for units eligible to receive the property tax exemption, which may not exceed 120 percent of the area median sale price per ORS 307.651(2); and
WHEREAS, the Portland Housing Bureau has received data from the Multnomah County Tax Assessor to determine the median sale price for dwelling units located in the City of Portland for the period of January 1, 2025, through November 30, 2025, as defined by statute; and
WHEREAS, it has been determined that the annual median sale price for dwelling units in the City of Portland for the above-mentioned period is approximately $520,000; and
WHEREAS, the Portland Housing Bureau has elected to establish a sale price cap that remains affordable to households earning up to 100 percent of the area median family income in order to support homeownership affordability for moderate income homebuyers.
NOW, THEREFORE, BE IT RESOLVED that the City Council establishes the annual HOLTE sale price cap at $455,000 for the 2026 calendar year, which goes into effect January 1, 2026.
Exhibits and attachments
Impact Statement
Purpose of proposed legislation and background information
The Portland Housing Bureau (PHB) administers the Homebuyer Opportunity Limited Tax Exemption (HOLTE) Program, authorized under ORS 307.651 and Portland City Code 3.102. The HOLTE Program promotes first-time homeownership opportunities for income-qualified homebuyers by providing a property tax exemption on the assessed value of newly built homes for 10 years. During the exemption period, homes must continue to be owner-occupied and not used as rental properties, and any new owners must income-qualify.
In order to maintain compliance with state statute, PHB must establish an annual sale price cap for the HOLTE program, which may not exceed 120% of the area median sale price between January 1 and November 30, 2025. The act to establish the price cap requires a resolution approved by City Council prior to January 1 each year. Based on data compiled by Multnomah County for sales between January 1 and November 30, 2025, the area median sale price was $520,000. Based on RMLS data compiled by PHB's data team through October 13, 2025, the median sale price for attached homes was $416,900.
Given that the HOLTE program is intended to promote affordable homeownership, the Housing Bureau has elected to maintain the 2026 sale price cap at $455,000 – 87.5% of the area median sale price and 109% of the median sale price for attached homes.
Financial and budgetary impacts
Although the HOLTE program itself reduces future revenue to the City in the form of forgone property taxes, this resolution does not impact the amount of foregone revenue; this resolution merely limits the sale price for units eligible to receive the property tax exemption under the program.
Economic and real estate development impacts
This resolution limits the sale price for units eligible to receive the property tax exemption under the HOLTE program. The sale price cap for 2025 was $455,000, which is used for both the HOLTE Program and the Affordable Housing System Development Charge (SDC) Exemption Program. HOLTE and SDC Exemption Program data for fiscal year 24/25 show an average sale price of $328,522, with a range of sales from $150,000 to $455,000; the average buyer income was just over 80% MFI. Based on current interest rates, $455,000 would only be affordable to 100% MFI households with a 16.1% downpayment or more. Therefore, staff does not recommend increasing the sale price cap. However, staff also recognizes the increasing costs (land, labor, materials, insurance) of developing new homes, which affects the ability of homebuilders to build and sell family-sized homes within the sale price cap. Therefore, staff recommends retaining the $455,000 sale price cap for 2026.
Community impacts and community involvement
As the largest taxing jurisdiction affected by the tax exemption programs, Multnomah County has approved the administration of this program in order to meet shared housing goals. County staff provide the City with the data necessary to establish the annual price cap.
The State of Housing report published annually by PHB demonstrates the community need to promote affordable homeownership opportunities.
PHB held a meeting with participating homebuilders in early December 2025 to review the HOLTE Program goals as well as current data regarding median sale price and program utilization. Feedback suggested that the $455,000 sale price cap continues to be appropriate based on market conditions.
100% renewable goal
Not applicable.
Economic and real estate development analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Document history
Document number: 2026-204
President's referral: Housing and Permitting Committee