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City development analyst outlines MUPTI tax-exemption tool for downtown housing
Summary
City staff described the Multi‑Unit Property Tax Exemption (MUPTI), showing it incentivizes higher-density, transit-supportive housing in Eugene's core, requires public-benefit criteria and modest green-building performance, and has approved 928 units toward a 1,500-unit review cap.
Dylan Huber Heidorn, the city's development analyst and MUPTI program manager, gave the Sustainability Commission an overview of Eugene's Multi‑Unit Property Tax Exemption (MUPTI), calling it a tool to "tip the scales" so development that would otherwise be financially infeasible can proceed in the downtown core.
Lede: "MUPTI grants qualifying projects up to a 10 year exemption on property tax for new residential development," Huber Heidorn said, noting the exemption applies only to new value added to a property, not to land or existing buildings. He described the program boundary around Eugene's downtown and riverfront, and said student housing is not eligible under current rules.
Nut graf: The program aims to stimulate transit‑supportive, compact residential development within a defined downtown boundary. Projects must show financial need, meet public‑benefit criteria (including local contracting goals and affordable‑housing commitments), and meet green‑building performance requirements.
Huber Heidorn said the program is enabled by a state statute (ORS) that directs tax exemptions to encourage transit‑supportive multiple‑unit housing in core areas. He described several program specifics: projects in residential zones must be 75% denser than the zoning minimum; form‑based downtown zones must achieve at least 30 units per acre; projects must show they are not financially feasible without the exemption; and applicants must present a plan for local contracting and hiring.
On sustainability requirements, Huber Heidorn said MUPTI requires projects to demonstrate at least a 10% energy‑efficiency improvement over the baseline state building code, using a LEED, Earth Advantage or engineered energy‑model pathway. He also said MUPTI requires installation of conduit for EV charging; newer state and local rules (for example CFEC rules and Eugene code updates) can be more demanding than the program's baseline.
Commissioners asked whether the 10% energy threshold is sufficient. Huber Heidorn responded that while 10% was seen as forward‑looking in 2015 when the current MUPTI rules were established, many recent projects have modeled 20–30% improvements with modern construction practices. Commissioners urged consideration of stronger electrification requirements and for projects to avoid on‑site fossil fuel systems when feasible.
Huber Heidorn also described program monitoring and triggers: the council placed a 1,500‑unit cap on program use in 2015, which requires an automatic program review once reached; as of the presentation he reported 928 units approved under current rules (count toward the 1,500 cap). He told commissioners that when the cap triggers review, council engagement and public input are likely to follow.
Ending: Huber Heidorn invited commissioners to track projects and said staff will coordinate future engagement if the program undergoes review. "That will be a great opportunity for the Sustainability Commission and other entities to weigh in," he said.
