Hacienda CDC seeks tax exemption for 55-unit Lake Grove project; school board asks for fiscal and service details

Hacienda CDC representatives presented a preliminary request that the Lake Oswego School District consider a property tax exemption for a 55‑unit affordable housing development planned in Lake Grove.

What was presented: Ernesto Fonseca, chief executive officer of Hacienda CDC, told the board the project would include 55 units, an approximate $32 million investment in housing and services, and an expectation that the property assessor would calculate an exemption value that translates to roughly $158,000 per year in total property taxes (presenter stated that the county assessor would determine the final number). Hacienda representatives said 10 of the 55 units would be long-term rental‑assistance voucher units and that they expected to house roughly 100–150 people across the property, with an estimate of about 32–64 school‑age children among residents.

Board staff context and estimated district impact: District staff said their internal estimate of the district’s share of a $150,000–$158,000 total annual tax bill would be roughly $30,000. A separate comment during the meeting used a 40% school slice and calculated approximately $60,000 annually to the district if total taxes were $150,000. School board members and staff noted estimates in the meeting differed depending on which total and which apportionment were used and requested clearer assessed‑value figures from Hacienda and assessor calculations before making a final decision.

Public comment and community services: During public comment a nearby resident, Ben Adams, expressed concern about an unrelated cell tower installation at Lakeridge and raised health and historic‑preservation questions; he also noted a stop‑work order was in place for that project. Hacienda’s presenter emphasized the developer’s bilingual resident services, on‑site resident services coordinator, and after‑school and early childhood programs they plan to offer as part of the development.

Board reaction and next steps: Board members asked for additional information before a formal vote. Questions included: the likely number of school‑aged children who would join district enrollment, any interim school‑based services or transition supports Hacienda would fund or provide, whether the city or county had already approved exemptions at their level, and a clear breakdown of assessed value and the resulting district revenue reduction. District staff confirmed the item was informational this evening and that administration planned to bring a formal resolution for board action at the June 30 meeting if the project proceeds.

Why it matters: If the district approves a local tax exemption for a project classified under state or local affordable‑housing exemptions, the district’s assessed tax revenue could be reduced; although state school funding partially offsets some changes through the school funding formula, board members noted that lost local property tax revenue is not neutral because local dollars and state revenues do not map 1:1 to services. Board members asked Hacienda CDC to provide clearer fiscal figures and to consider direct investments in school‑based supports for new residents as part of the exemption discussion.

Staff follow-up requested: Board members requested Hacienda CDC provide a more precise assessed value estimate, the developer’s anticipated timeline, and whether Hacienda would consider funding or underwriting school‑based transition services or a on‑site family coordinator to work with Hallinan and nearby schools. Administration will return the item for action on June 30 with the requested supplemental analyses.