RESOLUTION No. 36385

Establish $258,000 as the maximum price for a newly constructed, single-family house eligible for a limited property tax exemption in a homebuyer opportunity area (Resolution)

WHEREAS, the City Council passed Ordinance No. 162854 on March 22, 1990 adopting new property tax exemption programs for owner-occupied residential rehabilitation and newly constructed single family housing in distressed areas.

WHEREAS, Section 3.102.090 (D) of the amended Chapter 3.102 of Title 3 requires the Bureau of Planning to establish an annual maximum price limit for single-family housing eligible for the limited property tax exemption.

WHEREAS, this price limit is to be based on median sales price of single-family homes and condominiums located within the city as determined by data collected by the County Assessor and/or other representative sales price as provided by real estate, construction, or other industry sources.

WHEREAS, the maximum price limit cannot exceed 120 percent of the accepted base sales price.

WHEREAS, the Multnomah County Office of Assessment and Taxation provided the Planning Bureau staff with the median sales price of approximately $215,000 for both new and existing single-family houses and condominiums in the portion of the City of Portland that is in Multnomah County for the period ending November 30, 2005 as required by Oregon Revised Statutes 458.005(3) (d).

WHEREAS, single-family housing median sales prices have risen 15 percent between 2004 and 2005 in the Portland metropolitan area according to information in the December 2005 issue of Market Action, a local real estate publication,

WHEREAS, a price cap of $258,000 is 120 percent of the median sales price for the period ending November 30, 2005. The is 15 percent higher than the 2005 cap of $225,000.

WHEREAS, the maximum price cap is proposed to reflect the increase in home prices in the Portland metropolitan region. This increase is related to rising land prices and the increased cost of construction materials due in part to Hurricane Katrina.

THEREFORE, BE IT RESOLVED, that $258,000 is established as the maximum price of a newly constructed, single-family house or condominium (including the cost of the land) eligible for the limited property tax exemption as provided by Chapter 3.102 for calendar year 2006.

BACKING SHEET INFORMATION

AGENDA NO. 273-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36385