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Council debates joining Oregon's moderate-income revolving loan program, delays ordinance work
Summary
Milwaukie council heard detailed presentations from city staff, OHCS advisers and developers about the state MURAL program (no-interest loans converted to local grants via tax exemptions). Concerns about county IGAs, city liability and staff capacity led council to defer drafting an originating ordinance until rulemaking and county conversations advance.
City officials devoted substantial time Tuesday to whether Milwaukie should adopt an "originating ordinance" to participate in Oregon's moderate-income revolving loan program (known in discussion as MURAL). The program provides no-interest state loans to sponsoring jurisdictions that are converted into grants for qualifying housing projects through temporary property-tax exemptions.
"All taxing districts are exempt other than fire districts," Jason Mackey, a technical adviser with the Oregon Housing and Community Services Department (OHCS), told the council while clarifying how the state program treats local taxing districts. Mackey also clarified that OHCS intends to implement technical-rule changes by 2026 but there is not a hard January 1 deadline for those rules.
City staff and OHCS described the mechanics: the sponsoring…
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