*Amend approved application under the Multiple-Unit Limited Tax Exemption Program for NE Killingsworth Apartments located at 5470 NE 16th Ave to include 100 percent of the residential portion of the structural improvements (amend Ordinance No. 189444)

The City of Portland ordains: Section 1. The Council finds: 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. The MULTE Program provides a ten-year 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. Ordinance No. 188869, passed by Council March 21, 2018, which was amended through ordinance No. 189247, passed by Council November 8, 2018, created an interim use of the MULTE Program, referred to as the “Incenting the Pipeline” MULTE Program, as an incentive to developments which were vested prior to the City Inclusionary Housing Program’s inception on February 1, 2017. This interim use of the MULTE Program requires 10 years of affordability at 60 percent of Median Family Income (“MFI”) in exchange for a 10-year property exemption. This program accepted applications for review through June 30, 2020. Only vested projects with an estimated first year of foregone revenue of $500,000 or less are eligible for an exemption. Ordinance No. 189444, passed by Council on April 3, 2019, authorized a 10-year property tax exemption under the MULTE Program for the development known as NE Killingsworth Apartments (the “Project”) and located at 5470 NE 16 th Avenue (the “Property”). The application proposed eight units, comprised of four studio and four one-bedroom units, or 20 percent, of the Project’s 39 units would be restricted to households earning no more than 60 percent of Median Family Income (“MFI”) at the time of lease-up. Ordinance No. 189444 incorrectly directed the 10-year property tax exemption to include only 20 percent of the residential portion of the structural improvements, including 20 percent of residential parking and common areas rather than 100 percent of the residential portion of the structural improvements, including 100 percent of residential parking and common areas, in accordance with the Program. NOW, THEREFORE, the Council directs: Ordinance No. 189444 is hereby amended and the request for a 10-year property tax exemption under the MULTE Program is approved for 100 percent of the residential portion of the structural improvements of NE Killingsworth Apartments , including 100 percent of residential parking and common areas. The Project must restrict 20 percent of its units to households earning no more than 60 percent MFI (the “Restricted Units”) . The Restricted Units will reflect the unit-mix in the Project and consist of four studio and four one-bedroom units. All other portions of Ordinance 189444 will remain the same. Section 2. The Council declares an emergency exists because timely City approval of the application for the MULTE Program is necessary in order to allow the Project to proceed with issuance of the Project’s building permit and to begin construction; therefore, this ordinance shall be in full force and effect from and after its passage by the Council.