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Albany holds final hearing on multiunit property tax exemption; council debates public-benefit standards
Summary
At a public hearing on Oct. 22, Albany staff presented a proposed multiunit property tax exemption (MUPTI) program to encourage housing near transit; councilors debated the number and scale of required public-benefit commitments and moved to read an ordinance by title while leaving final adoption to a later meeting.
The Albany City Council held a public hearing Oct. 22 on a proposed multiunit property tax exemption program designed to encourage development of multiunit housing near transit and amenities.
Staff presenters Sophie Adams (economic development) and Matthew Rickers (community development) outlined program eligibility requirements tied to state law: projects must be within a quarter-mile of fixed-route transit, create or convert at least five dwelling units, complete construction within five years and before Jan. 1, 2032, and undergo a third-party financial feasibility review demonstrating the exemption is necessary. Projects must demonstrate public benefits, either by providing affordable units or other enumerated benefits; staff proposed a tiered approach that would allow a shorter (7-year) or full (10-year) exemption depending on the number and scale of benefits.
Council debate centered on how many public benefits to require for each abatement tier. Councilor McLeod urged stronger public-benefit requirements—proposing more than the two or three items in the draft—while others cautioned that overly strict requirements could make Albany an unattractive place for projects that need the incentive. Staff noted other Oregon cities vary widely: some require one public benefit, some require four; the in-lieu fee of 10% of foregone revenue was presented by staff as an industry starting point. Staff estimated the program would likely produce only one or two qualifying projects over the next three to five years given the narrow geographic boundary and high financial-analysis bar.
The city attorney read the ordinance creating Albany Municipal Code chapter 3.1 (the MUPTI program) by title; the council voted to read the ordinance a second time by title only. Staff said the council would return later to adopt a program guide by resolution and to authorize an intergovernmental agreement with Linn County once final language and minor typographical fixes are made.
Councilors and public commenters recommended adjusting the list and scale of public benefits and urged staff to monitor early projects and report back so the council could tweak the program guide if outcomes differ from expectations.
