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Albany council hears final public presentation on MUPD housing incentive; public benefits questioned
Summary
City staff presented final details of a proposed Multi‑Unit Property Tax Exemption (MUPD) program designed to spur housing near transit. Councilors discussed public‑benefit thresholds, application fees and implementation steps; staff noted some typos and said the program would return for ordinance and IGA adoption.
Albany City staff described a proposed Multi‑Unit Property Tax Exemption (MUPD) program during a public hearing on Oct. 22, outlining eligibility, public‑benefit requirements and next steps toward adoption.
Economic development manager Sophie Adams and community development director Matthew Rickers told council the state‑enabled program aims to encourage new or converted multiunit housing within a 1/4 mile of fixed‑route transit, with a minimum project size of five dwelling units. Projects must be completed within five years and before Jan. 1, 2032; a third‑party financial review is required to show the exemption is necessary for a project to be financially feasible. Staff estimated application fees in the mid‑$4,000 to $5,000 range and noted a program‑guide typo: the application due date should read Feb. 1 rather than Apr. 1.
Public‑benefit scoring will determine the length of the tax exemption: two qualifying public benefits are currently required for a seven‑year exemption, and three or more for the full 10‑year maximum allowed by state statute; staff also included locally requested options such as local labor/materials and accessible units beyond code. Councilor McLeod suggested strengthening the public‑benefit thresholds (for example, requiring more benefits for the longer abatement), while the mayor and others cautioned that raising requirements could deter developers.
Staff said the program grew from the Housing Implementation Plan (HIP) adopted in 2023 and that an intergovernmental agreement (IGA) with Linn County and presentations to other taxing districts will follow in November. If adopted, the city would establish the program by ordinance (AMC 3.1) and a resolution with guidelines and authorization to enter the IGA; staff said implementation is targeted for Jan. 1, subject to completing required agreements and contracting financial reviewers.
Next steps: staff asked council for final direction; the record will be updated to correct typographical errors in the program guide and to finalize fee and benefit thresholds before returning for ordinance and resolution adoption.
