City of Corvallis introduces new housing tax exemption programs for developers

The Corvallis Housing Operational Committee convened on March 17, 2025, to discuss various housing initiatives aimed at addressing the city's housing needs. A significant focus of the meeting was on the Urban Renewal District and the introduction of new housing programs designed to support low to moderate-income residents.

Currently, Corvallis has only one Urban Renewal District located in Southtown, which utilizes tax increment financing. The committee noted that there are no applicants for the Local Revitalization Planning District (LRPD) program at this time. However, they highlighted the Multiple Unit Property Tax Exemption (MUPD) program, which offers up to a 10-year tax exemption for market-rate housing developments that provide public benefits. The most recent project under this program is OB Downtown, which will feature 92 market-rate housing units.

The meeting also introduced the Moderate Income Revolving Loan Program (MIRL), a new initiative launched by the state of Oregon in February 2025. This program allows the Oregon Housing Community Services (OHCS) to provide no-interest loans to cities and counties for low to moderate-income housing projects. The City of Corvallis can then use these funds to support developers in creating new housing or converting non-residential structures. The program targets households earning up to 120% of the area median income (AMI), with a focus on workforce housing.

The committee discussed the evolving nature of the MIRL program, which has recently expanded its eligibility criteria to include very low-income residents. Developers participating in the program can benefit from property tax exemptions for up to 10 years, with the potential for extensions. Instead of traditional tax payments, developers will pay a fee that contributes to a revolving loan fund for future housing investments.

Overall, the meeting underscored the city's commitment to enhancing affordable housing options and supporting the development of new housing projects to meet the needs of its residents. The committee plans to continue monitoring these initiatives and their impact on the community.