Multiple Unit Property Tax Exemption Program

• Entire Core Area Tax Increment Finance (TIF) Area
• Central Business District (CB)
• Some High Density Residential (RH) zoning, adjacent to Core Area TIF district
  • Between NE 4th Street and NE 5th Street and a portion of NE Studio Road between NE Webster Avenue and SE Alden Avenue.
  • Along NE Irving Avenue between NE 4th Street and NE 8th Street
• Urban Dwelling Sites (HB3450) projects
  • Allows up to 40 acres commercially zoned land within a ¼ mile of a transit route to be developed as standalone residential

In order to be eligible for the exemption, projects need to meet the following eligibility requirements:

• Project must include three or more residential units
• Hotels, motels, and short-term vacation rentals are prohibited on lots taking advantage of the exemption
• Multi-story requirement
  • 2 story minimum for lots that are <10,000 square feet (s.f.)
  • 3 story minimum for lots that are > 10,000 s.f.
• Project would not be financially viable but for the property tax exemption. The City will consult a third party independent financial pro forma review to verify the financial need for the exemption.
• All projects required to provide justification for the elimination of any existing housing and businesses on the project site and what strategies were used to mitigate displacement of those residents and businesses
• Provide at least three public benefits including at least one “priority” public benefit as defined and listed within Bend Municipal Code 12.35

Multi-unit residential projects of three (3) or more units can receive a ten (10) year property tax exemption on structural residential improvements, including parking to support the residential improvements, as long as the program requirements are met.

Commercial improvements and parking may also be exempt if required by design standards (in the Bend Development Code).

30 Year Annual Tax Revenue

The program is intended to incentivize higher intensity housing development than may have been feasible without the exemption. For example, a developer may be evaluating building a 1-story retail building or a multi-story mixed-use housing project on a site. The housing project, under today’s market conditions, may not financially be feasible but for a tax exemption. In the long run, the larger mixed use project will provide housing opportunities for our community and ultimately generate higher levels of tax revenue. After a 10 year tax exemption, the higher property tax rates are collected by all the taxing districts for the mixed-use property than that site would generate if developed with a single story retail use.

The City is not currently accepting any new MUPTE applications.

FY 2022/23 Application Fee: $5,200

Step 1: Pre-application Meeting. Prior to applying, please set up a pre-application meeting with Allison Platt by emailing aplatt@bendoregon.gov.  This should ideally be held around the same time as your land use pre-application to ensure that the project program will be eligible for the exemption. 

When to apply: The applicant shall apply to the City no later than February 1 of each calendar year immediately preceding the first assessment year for which the exemption is requested (The County Assessor applies new tax rates on January 1 of each year following the year the property is re-assessed). However, applicants are strongly encouraged to apply prior to building permit issuance.

Step 2: To apply, visit the Online Permit Center Portal at https://cityview.ci.bend.or.us/Portal/

1. To start application, click on Apply under “Engineering & Agreements”
2. Make an account or utilize an existing account
3. Identify Multiple Unit Property Tax Exemption on drop down menu and begin application

Important note: You can NOT save applications once they are started until you complete the application and pay the fee, therefore we strongly encourage you to develop all the application materials before drafting your actual application. You can coordinate with staff on necessary submittals. Please use this Application Guidelines when you develop your application materials.

Step 3: Review of application. Staff and City Council will review your application and complete the review within 180 days of submitting a complete application. Staff will verify that you meet the program requirements, complete a 3^rd party independent financial review of the project pro forma. Following verification and review, staff will forward materials to taxing district agencies and work to schedule review of the application with both the City Council and Bend La Pine School District. In order for the full exemption to apply to each project, 51% of the combined levy of the taxing districts must approve that the project meets the program requirements by Resolution.

Step 4: You will be notified of staff recommendation based on review of your application, both the City Council and Taxing District board meetings dates where your project will be reviewed, and ultimately whether your project has been approved for the exemption program or not.

Step 5: You will be informed within 180 days if your application has been approved, denied, or approved subject to reasonable conditions. An application not acted upon within 180 days following complete application submittal shall be deemed approved.

Step 6: If the application is approved, the City shall file with the County Assessor on or before April 1^st following such approval and send a copy of the resolution approving the application to the applicant at their last known address.

In order to qualify for the MUPTE program, applicants must include at least three public benefits into their project including at least one “priority” public benefit as defined and listed within Bend Municipal Code 12.35.025

Priority Public Benefits:

• 10% of the units deed restricted for duration of exemption (10 years) as Affordable Housing.
  • Affordable Housing is defined as available to household making 60% AMI or less for a rental and 80% AMI or less for a for-sale unit.
• 30% of units provided as Middle –Income housing for duration of exemption (10 years)
  • Middle Income defined as available for a household making 120% AMI or less.
• Childcare Facilities
• Publicly Accessible Open Space, Park, or Plaza Space
  • Dedicate more than 10% of site area as publicly accessible open space, park or plaza space with usable amenities.
• High Standard of Energy Efficiency/Green Building Features
  • Energy Trust New Buildings Path to Net Zero; or
  • LEED Platinum; or
  • Earth Advantage Platinum or higher.

Additional Public Benefits:

• Energy Efficiency/Green Building Features
  • Energy Trust of Oregon New Building Whole Building; or
  • Energy Trust Multifamily Market Solutions Best; or
  • Earth Advantage Silver or higher; or
  • Solar installation that will supply some of the building’s energy using solar.
• Transit Supportive Amenities (requires coordination with Cascade East Transit)
• Mobility Supportive Amenities
• Ground floor commercial (More than 35% of ground floor as commercial uses, only applicable in zones that allow for commercial)
• Stormwater treatments to treat more than a 25-year storm event
• Environmental Remediation
• Public facilities
• Native, pollinator-friendly, and water-wise landscaping. See program guidelines for more information.
• Provide EV charging stations
• Wrapped parking structures
• Other public benefit not listed (must be evaluated and authorized by City Council)