Hacienda CDC seeks property tax exemption for 55-unit Lake Grove affordable housing project; board to consider resolution June 30

Hacienda CDC has requested a local property tax exemption for a 55-unit affordable housing development in the Lake Grove area, and district staff presented the project to the Lake Oswego School Board as an informational item.

Ernesto Fonseca, chief executive officer of Hacienda CDC, said the project would invest nearly $32 million to create 55 units and associated resident services. He estimated the project’s property tax impact would be "about a hundred and $58,000 per year," and the number of students who would live in the development and attend district schools was estimated at roughly "about 32 to 64" depending on household composition, he said.

Tony Ketchum, district staff who presented the briefing, said under Oregon law the city and school district can grant property tax exemptions for qualifying affordable housing developments; the school board’s action would be required if the project seeks an exemption that includes the district’s share. Ketchum said he provided a back-of-envelope estimate that the district’s portion of the tax exemption could be roughly $30,000 a year under one scenario, but board members noted different estimates and asked for clearer numbers.

Board members asked staff to provide additional detail ahead of a possible vote at the June 30 meeting. Questions from directors included: how many of the 55 units would be family-sized (two- or three-bedroom), how many school-age children would likely reside there, whether the project’s timing and financing require the exemption for viability, and whether the nonprofit could commit program dollars to support school transition services for resident families.

Ketchum said the request was being brought forward initially as information and that a formal resolution would be presented if the board decides to act. He said the city had previously granted a related blanket exemption for affordable housing in some circumstances and that the county was not yet part of the exemption request. Board members asked staff to get more precise estimates of the fiscal trade-offs — how much local revenue the district would forgo versus what support the housing provider would put in place for families who move in.

Board members discussed the trade-offs of diverting local property tax revenue and emphasized they would want to see concrete plans showing how program funding would help local students and schools if the board is asked to waive school tax revenue. Ketchum said staff would collect the requested information and return with a resolution for consideration on June 30.