71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
SA to SB 763
LC 1582/SB 763-5
SENATE AMENDMENTS TO
SENATE BILL 763
By COMMITTEE ON REVENUE
May 8
On page 1 of the printed bill, delete lines 4 through 30 and
delete pages 2 and 3 and insert:
' { + SECTION 1. + } { + Sections 2 to 10 of this 2001 Act
are added to and made a part of ORS chapter 285B. + }
' { + SECTION 2. + } { + As used in sections 2 to 10 of this
2001 Act:
' (1) 'Light rail station area' has the meaning given that term
in ORS 307.605.
' (2) 'Transit oriented area' has the meaning given that term
in ORS 307.605.
' (3) 'Vertical housing development project' means the
construction, reconstruction or rehabilitation of a building, or
a group of buildings, so that each building that is constructed,
reconstructed or rehabilitated consists of a first floor, or
first floor and other floors, to be used for commercial uses, and
one or more floors located on floors above the commercial use
floor or floors to be used for residential uses.
' (4) 'Vertical housing development zone' or 'zone' means an
area that has been designated a vertical housing development zone
under section 5 of this 2001 Act. + }
' { + SECTION 3. + } { + (1) A city or a county may apply to
the Director of the Economic and Community Development Department
for designation of an area within the city or county as a
vertical housing development zone.
' (2) With the prior consent of the governing body of the city,
a county may apply to the director on behalf of a city for
designation of any area within that city as a vertical housing
development zone.
' (3) A city and a county, or any combination of cities and
counties, may apply to the director for designation of an area
situated partly within the city and partly in unincorporated
territory within the county as a vertical housing development
zone.
' (4) An application for designation of a vertical housing
development zone shall be in such form and contain such
information as the Economic and Community Development Department
may require by rule, including:
' (a) A list of local taxing districts, other than the
applicant, that have territory in the proposed vertical housing
development zone.
' (b) A copy of a written notification mailed to the districts
listed pursuant to paragraph (a) of this subsection that:
' (A) Describes the proposed vertical housing development zone;
' (B) Explains the exemption described in section 9 of this
2001 Act that would apply if the proposed zone is designated; and
' (C) Invites comment on the proposed zone from a district
receiving notification, to be submitted to the director within 30
days following the date the application is filed with the
department. District comments should set forth the district's
opinion on the desirability of the proposed zone. Each district
submitting a comment shall submit a copy of the comment to the
applicant.
' (c) A statement signed by the applicant attesting that the
notification described in paragraph (b) of this subsection was
sent by regular mail to each district listed pursuant to
paragraph (a) of this subsection.
' (5) The application shall:
' (a) Be filed on behalf of one or more local government units
as described in subsections (1) to (3) of this section by action
of the governing body of each applicant;
' (b) Contain a description of the area sought to be designated
as a vertical housing development zone, including proposed zone
boundaries; and
' (c) Contain information sufficient to allow the director to
determine if the criteria established in section 5 of this 2001
Act are met. + }
' { + SECTION 4. + } { + (1) The Director of the Economic
and Community Development Department shall review each
application filed under section 3 of this 2001 Act and shall
approve or disapprove each application within 60 days of the date
the application is filed.
' (2)(a) If the applicant for vertical housing development zone
designation and the taxing districts submitting comments to the
director pursuant to section 3 (4) of this 2001 Act do not agree
on the desirability of zone designation, the director may not act
on an application for zone designation until a consultation
between the applicant and the objecting taxing districts has been
held.
' (b) Following the consultation, the applicant may modify or
withdraw the application.
' (c) The applicant shall notify the director when the
consultation described in this subsection has occurred.
' (3) The director may approve an application and thereby
designate the area that is the subject of the application as a
vertical housing development zone if the director determines that
the area meets the criteria set forth in section 5 of this 2001
Act.
' (4) The determination of the director to approve or
disapprove an application is a discretionary determination. The
determination is final and may not be appealed. + }
' { + SECTION 5. + } { + The Director of the Economic and
Community Development Department shall designate a vertical
housing development zone upon application made under section 3 of
this 2001 Act if the proposed zone constitutes a core area of an
urban center of this state, a light rail station area or a
transit oriented area. + }
' { + SECTION 6. + } { + (1) Following vertical housing
development zone designation under section 5 of this 2001 Act, if
the Director of the Economic and Community Development Department
receives a request to terminate a vertical housing development
zone from the applicant for zone designation under section 3 of
this 2001 Act, the director shall terminate the zone.
' (2) The termination of a zone under this section does not
affect the exemption of any property from tax under section 9 of
this 2001 Act if an application for the exemption was approved
prior to the zone termination. + }
' { + SECTION 7. + } { + (1) Following the designation of a
vertical housing development zone under section 5 of this 2001
Act, a person proposing to construct a vertical housing
development project and seeking the partial property tax
exemption set forth in section 9 of this 2001 Act shall apply to
the Economic and Community Development Department for
certification.
' (2) The application shall be on a form prescribed by the
department and shall contain any information required by the
department, including all of the following:
' (a) The address of the proposed vertical housing development
project;
' (b) A description of the existing state of the property;
' (c) A description of the proposed construction, including the
number of floors to be constructed;
' (d) A description of the commercial uses to which the first
floor or lower floors are to be put; and
' (e) A description of the residential housing to be located on
the upper floor or floors of the proposed vertical housing
development project.
' (3) The application must be filed under this section on or
before the date residential units that are a part of the vertical
housing development project are ready for occupancy.
' (4) The department shall review each application submitted
under this section and shall certify or deny certification based
on whether the proposed vertical housing development project
meets the criteria set forth in section 8 of this 2001 Act.
' (5) The department may request any documentation or undertake
any investigation necessary to ascertain the veracity of any
statement made on an application under this section.
' (6) The department shall certify or deny certification within
60 days following the date the application is filed with the
department.
' (7) A denial of certification may be appealed to the
department in the manner of a contested case under ORS 183.310 to
183.550. + }
' { + SECTION 8. + } { + (1) The Economic and Community
Development Department shall certify a proposed project as
eligible for the partial property tax exemption under section 9
of this 2001 Act if the application for certification describes a
vertical housing development project and the project is to be
constructed in a vertical housing development zone.
' (2) The department shall send a copy of the certification to
the county assessor of the county in which the vertical housing
development project is to be located. + }
' { + SECTION 9. + } { + (1) For the first tax year in
which, as of the assessment date, a vertical housing development
project is occupied or ready for occupancy following
certification under section 8 of this 2001 Act, and for the next
nine consecutive tax years, the vertical housing development
project shall be partially exempt from ad valorem property tax,
according to the following schedule:
' (a) If the project consists of one floor of residential
housing, the project shall be 20 percent exempt.
' (b) If the project consists of two floors of residential
housing, the project shall be 40 percent exempt.
' (c) If the project consists of three floors of residential
housing, the project shall be 60 percent exempt.
' (d) If the project consists of four or more floors of
residential housing, the project shall be 80 percent exempt.
' (2) During the period in which property would otherwise be
partially exempt under this section, property shall be
disqualified from exemption under this section if a floor used
for residential housing is converted to another use. + }
' { + SECTION 10. + } { + (1) Following the designation of a
vertical housing development zone under section 5 of this 2001
Act, the city or county in which the zone is located may acquire
real property within the zone for the purpose of developing the
property. The development may be undertaken by the city or county
independently, jointly or in partnership with a private entity.
The entities undertaking the development of property under this
section may own and operate the developed property or may sell or
otherwise dispose of the property at any time during or after
development. The property may be sold at the property's real
market value or at a lesser value.
' (2) The development of property under this section may be
undertaken only if the governing body of the city or county
determines that the development will encourage high-density
vertical residential housing or the efficient use of mass transit
facilities within the vertical housing development zone. + } ' .
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