Westland officials review construction excise tax and development strategies for affordable housing

The West Linn City Council held a special meeting on February 18, 2025, focusing on strategies for implementing a construction excise tax (CET) and tax abatement initiatives aimed at enhancing affordable housing in the community. The meeting began with a review of stakeholder feedback gathered through a recent survey, which provided valuable insights into the community's concerns and suggestions regarding these strategies.

Key discussions included updates to the systems development charges (SDCs), with proposals to potentially reduce or defer payments for projects that incorporate accessibility features. The council also examined the implications of tax increment financing, particularly in relation to the Riverfront area, and how these strategies could be applied across various taxing districts in West Linn.

Bridal Buckley from Johnson Economics presented detailed information about the CET, which is designed to generate funds for affordable housing projects. The CET can be applied to both residential and commercial developments, with residential rates capped at 1% of the permit value. The council discussed the potential revenue generation from the CET, estimating that it could yield approximately $300,000 annually based on recent permitting activity.

Council members raised questions about the procedural aspects of implementing the CET, clarifying that it would require an ordinance adopted by the city council rather than a public vote. They also explored the relationship between the CET and existing SDCs, noting that affordable housing projects would typically be exempt from the CET, allowing for a more flexible approach to funding.

The meeting concluded with a summary of the proposed implementation timelines for the various strategies discussed, emphasizing a phased approach to avoid overwhelming city staff. The council expressed a commitment to moving forward with initiatives that could be launched in the near term, such as rezoning land and applying tax exemptions to specific projects.

Overall, the meeting highlighted the council's proactive stance on addressing affordable housing challenges in West Linn, with a focus on leveraging local funding mechanisms to support development efforts. Further discussions and follow-up actions are anticipated as the council continues to refine these strategies.