passed ordinance

Authorize a 5-year deferral of single-family residential assessments in the NE 55th-57th Aves and Killingsworth St Local Improvement District (C-10062)

housing
transportation
local improvement
lien foreclosure

Department: Transportation
Introduced by: Former Commissioner Jo Ann Hardesty
Status: Passed

Impact statement

Purpose & background

Authorizes single-family residential deferrals for the NE 55th – 57th Avenues & Killingsworth Street LID.

Financial impacts

The total project cost is $1,328,946 of which $1,107,558 were expenses incurred by the City of Portland and $221,388 were expenses incurred by Habitat for Humanity. The final assessment for the core LID is in the amount of $312,012 which is 50.9% below the amount estimated in 2016 prior to LID formation. This is primarily attributable to Habitat for Humanity building the first phase of construction at their own expense in lieu of an LID assessment for street costs, with PBOT’s contractor building the second phase of construction. Of the $312,012 LID assessment amount, $251,140 will be paid off within 30 days of final assessment. The remaining 19.5% (up to $60,872) may be deferred upon election by the two (2) property owners. There is no cost to the City to defer should the property owners elect to defer. PBOT General Transportation Revenue (GTR) will fund any deferral(s) elected by property owners, and GTR will be repaid with interest at the end of the deferral period of up to 5 years.

Community impacts

No impacts to the community as no property owner has indicated interest in deferral yet. Upon passage of this ordinance, PBOT will notify eligible property owners of this deferral option, with PBOT authorized to establish a deadline to apply for a deferral not less than 21 days after the date of mailing of the deferral notice.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: The Council stated its intent to construct improvements in the NE 55th-57th Avenues & Killingsworth Street Local Improvement District (LID) by the adoption of Resolution No. 37351 on April 25, 2018 declaring its intent to initiate local improvement district formation proceedings and establishing the name of the local improvement district. The Council approved formation of the NE 55th-57th Avenues & Killingsworth Street LID with the passage of Ordinance No. 188997 on June 6, 2018. Property rights for the NE 55th-57th & Killingsworth LID were acquired without filing for eminent domain, and no writ for judicial review was filed after LID formation. Therefore this deferral option is being offered pursuant to directive ‘m’ of Ordinance referenced in Finding No. 2 of this Ordinance. Pursuant to City Code, assessments for the NE 55th-57th Avenues & Killingsworth Street will be imposed by a separate Ordinance subsequent to the Ordinance referenced in Finding No. 2 of this Ordinance. Concurrent with presenting the Final Assessment Ordinance to City Council for approval, the Portland Bureau of Transportation (PBOT) proposes to offer a 5-year deferral program on terms generally consistent with its system development charge contract deferrals. The LID deferrals will be secured by liens on each benefitted property whose owners have elected to pursue a deferral and will accrue simple interest at a rate of 3.75% per year as confirmed by the City’s Debt Manager on January 10, 2022. Deferrals are eligible for renewal at the deferral expiration period at the sole discretion of the Director of PBOT. NOW, THEREFORE, the Council directs: PBOT is authorized to pay single family residential NE 55th-57th Avenues & Killingsworth Street subsequent to Council approval of a Final Assessment Ordinance and to replace the assessments with deferral loans for a maximum period of 5 years with new liens recorded with Multnomah County with terms and conditions substantially similar to Exhibit A of this Ordinance. PBOT to notify eligible property owners of this deferral option upon passage of this Ordinance, with PBOT authorized to establish a deadline to apply for a deferral not less than 21 days after the date of mailing of the deferral notice. PBOT is authorized to make any necessary changes to the deferral loan as contained in Exhibit A of this Ordinance to meet Multnomah County recording requirements which do not affect the substantive terms and conditions of Exhibit A. Deferral liens authorized by this Ordinance will not be administered by the Revenue Bureau and will be released by PBOT upon full payment of the deferral obligation. PBOT is under no obligation to offer a deferral after the passage of the deadline referenced in directive ‘B’.

Tally

4 yea 0 nay 1 other