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Committee reviews extension of multi‑unit rental housing exemption; LRO outlines two schedule options
Summary
House Bill 2,078 would extend the property tax exemption for newly constructed or rehabilitated multi‑unit rental housing. LRO explained two schedule options for exemption terms and amounts; Tax Fairness Oregon testified in favor of the extension.
Chair Nathanson opened a public hearing on House Bill 2,078, a measure to extend the property tax exemption for newly constructed or rehabilitated multi‑unit rental housing from January 1, 2027 to January 1, 2033. LRO described the policy purpose as increasing the supply of workforce rental housing and summarized the two available local schedule options.
Under LRO’s explanation, cities or counties may adopt an ordinance granting an exemption under one of two schedules: (1) a fixed percentage exemption with a term (up to 10 years) that varies according to the share of units reserved for households at specified AMI thresholds; or (2) a fixed 10‑year term with an exemption percentage that varies by the share of affordable units. LRO also noted that a property may receive a construction exemption once and a location exemption once, and that the adoption requires an application each year by March 1 in most cases.
Richard Swift of Tax Fairness Oregon testified in support of extending the sunset, saying Oregon needs more workforce housing. The committee asked procedural and technical questions about usage and the LRO noted at least one ongoing large project in Medford and said the exemption is relatively new (established in 2017) and still developing. The hearing closed with no committee vote recorded.
Materials submitted to the committee and the LRO report remain available for members to review.
