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Council approves 20-year property tax exemption for Alma Apartments to preserve below‑market units
Summary
The City Council voted to grant a 20-year Low Income Rental Property (LRP) tax exemption to Cornerstone Community Housing for the 39-unit Alma Apartments; all units will serve households at or below 60% of area median income and 10 units will be reserved for Hope and Safety Alliance clients.
Katie Carroll, the city’s housing analyst, presented an application from Cornerstone Community Housing asking the council to approve a 20‑year Low Income Rental (LRP) property tax exemption for the Alma Apartments, a 39‑unit project under construction at 1875 Sixteenth Street. Carroll said the LRP is a state‑authorized exemption that cities may implement to encourage income‑qualified rental housing and that Springfield’s local program has been in place since 1993 (amended in 2018). "In its application, Cornerstone explained that the tax exemption will help keep the property financially solvent over time and that tax savings will help supplement rent affordability and property maintenance and improvements," Carroll said.
Carroll told councilors the Alma Apartments plan all units at or below 60% of area median income (AMI), with a mix of studio through two‑bedroom units and 10 units reserved for clients of Hope and Safety Alliance. The project’s financing includes about $2.6 million in public support: roughly $2.0 million in federal HOME funds (through the HOME governing board) and $578,000 in one‑time state general funds allocated earlier by council as COVID recovery assistance.
Councilors voiced support for the project’s long‑term affordability. One councilor asked whether the exemption "runs with the property" if the owner changes; staff confirmed the exemption generally runs with the property and that owners may opt out of the program at any time under program rules.
Council action: Councilor Michelle moved to adopt a resolution approving the low income rental housing property tax exemption for the Alma Apartments at 1875 Sixteenth Street (Assessor’s map 17‑03‑25‑24, tax lots 01800, 01900 and 02000); the motion was seconded and passed 5–0 with Councilor Stout excused. Staff noted the application was received Nov. 26 and the council’s 60‑day decision window ends Jan. 25. The staff report, standards and guidelines and Carroll’s analysis are in the council packet (exhibits and attachments listed by staff).
