City Council implements low income housing tax exemptions for affordable developments

In the heart of Lake Oswego's city hall, a pivotal discussion unfolded regarding the future of affordable housing in the community. City officials gathered to address the nonprofit low-income housing tax exemption, a program designed to ease the financial burden on organizations that provide affordable housing for residents earning 60% or less of the area median income. This initiative, adopted last May, aims to support developments like the Mercy Greenbrae project at Marrowhurst Commons, ensuring that low-income residents have access to safe and affordable living options.

As the meeting progressed, city representatives highlighted the importance of continuing to implement this exemption effectively. They noted that a midpoint report would be shared with the Department of Land Conservation and Development (DLCD), showcasing the various projects benefiting from this initiative.

The conversation then shifted to a new strategy: the low-income rental housing tax exemption. Unlike its nonprofit counterpart, this exemption would extend to for-profit developers as well, provided they offer housing at or below the same income threshold. City officials expressed optimism about launching this program by fall 2025, pending city council approval.

To ensure the success of this initiative, the city plans to engage with other taxing jurisdictions to explore their participation in the exemption. Additionally, they will develop application standards and guidelines to establish clear criteria for eligibility.

As the meeting concluded, the commitment to enhancing affordable housing options in Lake Oswego was evident. With these initiatives, city leaders aim to create a more inclusive community, where residents can thrive without the heavy burden of housing costs. The path ahead is filled with potential, and the city is poised to take significant steps toward a more equitable future for all its residents.