The Lake Oswego School District Board of Directors voted June 3 to approve a resolution granting a property tax exemption for Hacienda Community Development Corporation’s planned affordable housing project in Lake Oswego.

Board members and staff framed the vote as a way to enable deeper resident services while the district absorbs a relatively small reduction in locally available tax revenue. Staff estimated Hacienda’s total annual property tax liability at about $120,000; after state equalization effects the district’s foregone revenue was described as roughly $50,000 a year, with about $10,000 a year in lost local-option tax revenue, according to a district staff presentation.

Supporters said the exemption is necessary to make the project financially viable and to keep units affordable. Ernesto Fonseca, chief executive officer of Hacienda CDC, told the board Hacienda pairs housing with a network of partner services and that the exemption dollars would help preserve the project’s budget for resident programming. Mayor Joe Buck said the city council had unanimously approved its abatement and that joining the district would qualify Hacienda for an exemption of the entire property tax burden if the combined taxing jurisdictions reach the statutory threshold.

Residents and nonprofit leaders urged approval. John Devlin, a Lake Oswego resident who serves on the board of Path Home, said the project will provide 55 apartments — including about 21 two-bedroom and five three-bedroom units — with units targeted at 60% and 30% of area median income. Devlin told the board the materials estimate between 32 and 64 children will live at the development.

District staff explained how the exemption functions in the school finance system. A district staff member presenting financial details said state school fund equalization and debt service levy mechanisms reduce the district’s direct exposure, leaving most of the foregone revenue to be borne through local-option tax revenues. The staff member also noted that the city must file annual paperwork with the county assessor to maintain the exemption while the property remains low‑income housing.

Board members discussed the fiscal and community tradeoffs. Director Bills said the decision was difficult but ultimately supportable; Director Gupta and others said the district must plan for additional student supports if the project increases enrollment or service needs.

Motion and vote: Director Liz Hartman moved to approve the Hacienda CDC tax-exemption resolution; Director Bills seconded. The board approved the resolution by voice vote; the transcript records a board roll of “aye”s and the chair declared the motion passed. The minutes and staff materials attached to the resolution show the city has already approved its abatement and that the exemption is expected to be long‑term while the property serves low‑income residents.

What it means: Hacienda CDC and city leaders said the dollar value of the exemption increases the funds available for on-site resident services and programming; Hacienda’s CEO said the exemption, together with other previously granted fee waivers, helps leverage other funding sources to preserve deep affordability. District leaders said the lost local-option revenue is modest compared with the district’s total budget but acknowledged the district will need to monitor any additional student support costs.

Next steps: The resolution was approved tonight and will be implemented through the city and county assessor processes. The district said ongoing annual renewal paperwork is submitted at the city level and the exemption remains contingent on the property continuing to qualify as low‑income housing.