City Council prepares to adopt affordable housing tax exemption policy by early 2026

Lake Oswego City Council is moving forward with a new tax exemption policy aimed at promoting affordable housing, with plans to adopt the measure by early 2026. This decision comes as part of a broader strategy to engage in public-private partnerships to develop affordable housing options in the community.

During the recent Planning Commission meeting, city officials discussed the complexities of the proposed tax exemption policy, emphasizing the need for careful consideration of what actions can be taken within the city's control. The council aims to create opportunities for collaboration with private entities, recognizing that addressing the affordable housing crisis is a shared responsibility.

The city is also responding to a requirement from the Department of Land Conservation and Development (DLCD), which mandates action on at least one of the four recommended strategies outlined in the Housing Production Strategy (HPS). This requirement underscores the urgency of the city's efforts to enhance housing availability and affordability.

As Lake Oswego prepares to implement these initiatives, residents can expect a more proactive approach to tackling housing challenges in the coming years. The city remains committed to fostering partnerships that will lead to tangible outcomes in affordable housing development.