Chapter 469
AN ACT
SB 777
Relating to rehabilitated property tax abatements; amending ORS
308.450, 308.462, 308.471, 308.477 and 308.481.
Be It Enacted by the People of
the State of
SECTION 1. ORS 308.450 is amended to read:
308.450. As used in ORS
308.450 to 308.481:
(1) “Distressed area”
means a primarily residential area of a county or city that is designated as a
distressed area by the county or city because the area is detrimental to the
safety, health and welfare of the community due to the following factors:
(a) Deterioration;
(b) Inadequate or
improper facilities;
(c) The existence of
unsafe or abandoned structures, including but not limited to a significant
number of vacant or abandoned single or multifamily residential units; or
(d) Any combination of
these or similar factors.
(2) “Governing body”
means the city or county legislative body having jurisdiction over the property
for which a limited assessment may be applied for under ORS 308.450 to 308.481.
(3) “Rehabilitated
residential property” means land and the improvements thereon:
(a) That are either single or multifamily residential units or are
not residential units but that will become residential units through
rehabilitation improvements;
(b) That fail to comply
with one or more standards of the state or local building or housing codes
applicable at the time the application is filed;
(c)(A) That are not less
than 25 years of age on January 1[, 1986]
in the year the application is filed with the governing body, and on which
sums have been expended after September 13, 1975, and prior to [January 1, 2008] January 1, 2017,
for the purpose of making rehabilitation improvements, and which sums in the
aggregate equal or exceed five percent of the assessed value of the land and
improvements thereon as reflected in the last certified assessment roll next
preceding the date on which the application for limited assessment is filed
with the governing body pursuant to ORS 308.462; or
(B) On which, regardless
of the age of the residential property, sums have been expended or the
renovation completed after October 3, 1989, and prior to [January 1, 2008] January 1, 2017, for the purpose of making
rehabilitation improvements, and which sums in the aggregate equal or exceed 50
percent of the assessed value of the land and improvements thereon as reflected
in the last certified assessment roll next preceding the date on which the
applications for limited assessment is filed with the governing body pursuant
to ORS 308.462;
(d) In which at least 50
percent of accommodations are for residential use and not for transient
occupancy; [and]
(e) If owner-occupied,
that are located within a distressed area[.]; and
(f) For which an
application is filed with the governing body prior to January 1, 2015.
(4) “Rehabilitation
improvements” means modifications to existing structures that are made to
achieve a condition of substantial compliance.
(5) “Substantial
compliance” means compliance with local building or housing code requirements.
It does not mean that all heating, plumbing and electrical systems must be
replaced with systems meeting current standards for new construction,
notwithstanding that the cost of rehabilitation may exceed 50 percent of the
value of the structure before rehabilitation.
SECTION 2. ORS 308.462 is amended to read:
308.462. To qualify for
the limited assessment provided by ORS 308.450 to 308.481, the owner shall:
(1) Prior to
commencement of rehabilitation improvements, secure from the governing body or
its duly authorized agent, verification of noncompliance with code as described
in ORS 308.450 (3)(b);
(2) File an agreement
with the governing body, where required by the governing body, between the
owner and the governing body to negotiate rental rates to be charged for the
rehabilitated rental units during the period of the limited assessment; [and]
(3) Prior to
commencement of rehabilitation improvements, file an application for
limited assessment with the governing body that contains any information the
governing body deems necessary to determine whether the property qualifies for
limited assessment[.]; and
(4) Complete
rehabilitation improvements within two years of approval of the application for
limited assessment filed under this section.
SECTION 3. ORS 308.471 is amended to read:
308.471. (1) Upon
completion of the rehabilitation improvements for which an application for
limited assessment filed under ORS 308.462 has been approved, the owner shall,
if appropriate, file with the governing body the following:
(a) A statement of rents
charged for each rental unit for the 12-month period preceding the commencement
of rehabilitation improvements, if an agreement has been filed under ORS
308.462 (2);
(b) A statement of the
amount of rehabilitation expenditures made with respect to each unit and the
composite expenditures made in the rehabilitation of the entire property; [and]
(c) A copy of all
final building permits and clearances issued by the appropriate government
agency; and
[(c)] (d) A statement that the
rehabilitation improvements or to the owner’s property qualify such property
for limited assessment under ORS 308.450 to 308.481.
(2) Within 30 days after
receipt of the statements required by subsection (1) of this section, the
governing body shall determine whether or not the owner’s property is qualified
for limited assessment under ORS 308.450 to 308.481.
(3) If [the rehabilitation was completed within two
years of the date the application for limited assessment was filed under ORS
308.462 and] the governing body determines that the owner’s property is
qualified for limited assessment under ORS 308.450 to 308.481, the governing
body shall file the certificate of qualification required by ORS 308.466 with
the county assessor within 10 days after the expiration of the 30-day period
provided by subsection (2) of this section.
(4) If the governing
body determines that [rehabilitation was
not completed within two years of the application date or that] the owner’s
property is [otherwise] not qualified
for limited assessment under ORS 308.450 to 308.481, the governing body or its
agent shall state in writing reasons why the property is not qualified and send
such writing to the owner within 10 days after the determination.
(5) An owner may appeal
an adverse determination by the governing body to the governing body within 30
days after receipt of the writing required by subsection (4) of this section.
If the governing body rejects the appeal, the owner may appeal to the circuit
court, and from the decision of the circuit court to the Court of Appeals, as
provided by law.
SECTION 4. ORS 308.477 is amended to read:
308.477. (1) Except as
provided in ORS 308.479, if, after a certificate of qualification has been
filed with the county assessor under ORS 308.466, the governing body finds that
the rehabilitation improvements were not completed on or before [January 1, 2008] January 1, 2017,
or that any provision of ORS 308.450 to 308.481 is not being complied with, or
any provision required by the governing body pursuant to ORS 308.450 to 308.481
is not being complied with, it shall give notice in writing to the owner,
mailed to the owner’s last-known address, of the proposed termination of the
limited assessment. The notice shall state the reasons for the proposed
termination and shall require the owner to appear at a specified time, not less
than 20 days after mailing the notice, to show cause, if any, why the limited
assessment should not be terminated.
(2) If the owner does
not appear or appears and fails to show cause why the
limited assessment should not be terminated, the governing body shall terminate
the limited assessment. A copy of the termination shall be filed with the
county assessor and a copy sent to the owner at the owner’s last-known address,
within 10 days after its adoption.
(3) The owner may appeal
the termination to the circuit court, and from the decision of the circuit
court to the Court of Appeals, as provided by law.
(4) If no appeal is
taken as provided in subsection (3) of this section, or upon final
adjudication, the county officials having possession of the assessment and tax
rolls shall correct the rolls in the manner provided for omitted property under
ORS 311.216 to 311.232 to provide for the assessment and taxation of any value
not included in the valuation of the rehabilitation improvements during the
period of limited assessment prior to termination by the governing body or by a
court, in accordance with the findings of the governing body or the court as to
the assessment year in which the limited assessment is to terminate. The county
assessor shall make the valuation of the property necessary to permit
correction of the rolls, and the owner may appeal the valuation in the manner
provided under ORS 311.216 to 311.232. Where there has been a failure to
comply, as provided in subsection (1) of this section, the property shall be
revalued beginning January 1 of the assessment year in which the noncompliance
first occurred. Any additional taxes becoming due shall be payable without
interest if paid in the period prior to the 16th day of the month next
following the month of correction. If not paid within such period, the
additional taxes shall thereafter be considered delinquent on the date they
would normally have become delinquent if timely extended on the roll or rolls
in the year or years for which the correction was made.
SECTION 5. ORS 308.481 is amended to read:
308.481. Notwithstanding
any provision of ORS 308.477, if the governing body finds that the
rehabilitation improvements were not completed by [January 1, 2008] January 1, 2017, due to circumstances
beyond the control of the owner, and that the owner had been acting and could
reasonably be expected to act in good faith and with due diligence, the
governing body may extend the deadline for completion for a period not to
exceed 12 consecutive months.
Approved by the Governor June 18, 2007
Filed in the office of Secretary of State June 19, 2007
Effective date January 1, 2008
__________