Council hears MUPTI briefing: eligibility, tiered benefits and Feb. 1 application deadline under ORS

City staff presented the Multi‑Unit Property Tax Exemption (MUPTI) program to guide housing development near transit and the downtown core and explained recent refinements before the public hearing scheduled for Wednesday.

Planner Jennifer Ware said MUPTI is intended to incentivize new or converted multi‑dwelling housing within designated areas close to fixed‑route transit and that the city is initially focusing the program on the downtown core as a pilot. Key eligibility elements include a minimum project size of five dwelling units, a construction timeline (projects must be completed by 01/01/2032 per ORS) and a required independent financial review to show whether the exemption is necessary.

The program uses a tiered public‑benefit approach: projects providing two additional public benefits qualify for a seven‑year tax abatement; three public benefits can qualify a project for the full 10‑year abatement allowed under state statute. Affordable housing requirements were described as units affordable to households earning 80% or less of area median income; staff said affordability can be satisfied either by on‑site units or an in‑lieu payment deposited into a separate affordable housing account.

Councilors asked whether the program guide was modeled on other cities and whether ORS allows cities to set stricter conditions; staff said the statute provides flexibility on public benefits and the city had reviewed a range of local models. Councilor McLeod and others urged consideration of stronger public‑benefit thresholds and higher in‑lieu payments to ensure the exemption delivers long‑term community value.

Staff emphasized the statutory schedule for application and review (a maximum 180 days for local review once a complete application is submitted) and said the program will return Wednesday for the public hearing and, if approved, adoption. No final action was taken at the work session.