Property Tax Exemption Programs

Current Corvallis Housing Status

Corvallis is Oregon’s #1 most severely rent burdened community. Approximately 37.1% of renting households in Corvallis spend more than 50% of their monthly income towards the costs of renting a home. The City needs a diversity of housing types to help meet demand. The full report can be found here.

Why Property Tax Exemptions?

*THESE TOOLS WILL BE USED BY DEVELOPERS TO INCREASE HOUSING SUPPLY IN OUR COMMUNITY. SINGLE FAMILY PROPERTIES ARE NOT BE ELIGIBLE FOR THESE EXEMPTIONS.*

These exemptions are listed as a goal in the City of Corvallis Strategic Operational Plan (SOP)
- P-5(a)- "The City engages the community in proactively planning for managed growth to achieve compact, resource efficient development that provides for a range of housing options."
- P-8(G)- "The City leverages community development resources to prioritize housing affordability (...) and fair housing issues (by) evaluating property tax incentives for affordable housing."
Recommended by the Housing Development Task Force
- Nonprofit Low Income Rental Housing Property Tax Exemption (LIRPTE) and Multi-Unit Property Tax Exemption (MUPTE)
These tools have been requested by developers as a means to increase housing supply.

Property Tax Exemption Overview

Legislatively-approved tool that relieves qualified organizations from all or part of their property tax.
Relief is applied for by organizations and reviewed based on financial need on a case-by-case basis
If the program criteria is met and the application is approved, exemption from property tax on the property is granted for a specific amount of time

Multi-Unit Property Tax Exemption (MUPTE)

The owner and developer can be a for-profit entity
Rental units may be offered at market rate if affordable housing isn't one of the stated public benefits.
- If not providing affordable housing, the property will pay 10% of its exemption into a fund to support the future affordable housing development
The duration of the exemption is 10 years.
Each application would be reviewed on a case-by-case basis with a demonstrated financial need.
If approved, they would receive up to a 100% exemption for the portions of the property the exemption would apply to.
Each project will be required to also create either one substantial public benefit or three smaller, but impactful public benefits.

Low Income Rental Housing Property Tax Exemption (LIRPTE)

Nonprofit Entities:

The owner and developer must be a nonprofit organization
All units must be offered at 60% of the Average Median Income in Corvallis for the first year and may move up to 80% of the Average Median Income in Corvallis in the second year, if approved.
The organization must apply for the exemption every year and show that it's meeting the required criteria
Each application would be reviewed on a case-by-case basis, and must have a demonstrated financial need for exemption.
If approved, they would receive up to a 100% exemption from their property taxes for the year in exchange for passing those savings onto the renters by charging lower rent.
If the criteria is proved to be disregarded during the term of the exemption, it will be revoked and the organization will be required to pay the full amount of the exemption.

For-Profit Entities:

The owner and developer can be a for-profit entity
All units must be rented to households at or below 60% of the Average Median Income in Corvallis.
The entity applies for the exemption the first year and if approved, it will last 20 years
An annual report must be submitted, proving they are adhering to the required criteria. It can be renewed, if applied for again and approved.
Each application would be reviewed on a case-by-case basis, based on demonstrated financial need
If approved, they would receive up to a 100% exemption from their property taxes for the year in exchange for passing those savings onto the renters by charging lower rent.
If the criteria is proved to be disregarded during the term of the exemption, it will be revoked and the organization will be required to pay the full amount of the exemption.