ORDINANCE No. 182925

Amend City Code requirements regarding district property management license to include certain owner occupied housing. (Ordinance; amend Code Chapter 6.06)

The City of Portland ordains:

Section 1. The Council finds:

1. In 2001, the City Council adopted Ordinance No. 175729, continuing in effect the property management license fee for the Downtown Business District for 10 years, subject to certain revisions.

2. The license fee includes managers of all downtown residential rental properties, in order to recognize that the use of downtown property for residential rental purposes contributes to the downtown need–for-supplemental services load. In adopting Ordinance No. 175729, however, the City Council included an exemption for management of owner occupied dwellings, but encouraged their management to enter into pledge compacts to make payments in support of the District on a voluntary basis.

3. The use of downtown property for owner occupied dwelling purposes contributes to the downtown need-for-supplemental services load. Voluntary payments in support of the District from managers of owner occupied dwellings, however, in response to the City Council’s encouragement, have been small in relation to the payments required from managers of downtown residential rental housing.

4. In Ordinance No. 175729, the City Council found that the property management license fee and formula, as presently established for management of residential rental property in the District (other than the separate fee for affordable rental property), yields a fair representation of the need-for-supplemental services loads that uses of District property for residential rental purposes create and is the best fee and formula that can be developed taking into consideration fairness and availability of existing public databases. That same fee and formula also yields a fair representation of the need-for-supplemental services loads that uses of property for owner occupied dwellings create and also is the best fee and formula that can be developed for managers of those uses taking into consideration fairness and availability of existing public databases.

5. It was established, in City of Portland v. Atwood, 13 OTR 136 (1994), that the property management license fee as established in 1994 was not subject to the limits of Section 11b, Article XI of the Oregon Constitution. It is the determination of the Council that the property management license fee, as applied to managers of owner occupied dwellings, also is not subject to the limits of section 11b and is not subject to the limits of section 11, Article XI of the Oregon Constitution. The Council therefore classifies the license fee, as applied to managers of owner occupied dwellings, as not subject to those limits.

NOW, THEREFORE, the Council directs:

a.  Section 6.06.212, Downtown Business District Exempt Property, is amended as follows:

The Downtown Business District property management license requirements shall not apply to exempt property. For purposes of this Section, “exempt property” means exempt property as defined in Section 6.06.020 I and also means exempt residential property. “Exempt residential property” means property which is owner occupied dwelling units, as defined in Chapter 33.910 of this Code, and any common space associated exclusively therewith a dwelling unit as defined in Chapter 33.910 of this Code that is owner-occupied and has its own separate water service.

b.  Section 6.06.020 C, Definitions, is amended as follows:

C. “Business property” means real property that is not residential property and is not exempt property. If real property in the District in part is residential or exempt property and in part is neither residential nor exempt property, then “business property” is that portion of the real property that is neither residential nor exempt property, including a proportionate share of the land;. For a condominium, all condominium units and their undivided interests in the common elements shall be treated as a single property;

c.  Section 6.06.020 O, Definitions, is amended as follows:

O. “Residential Property” means real property that is exclusively in residential use and is not exempt property. If part of real property is in residential use and part is not in residential use or is exempt property, then “residential property” is that portion of the real property that is exclusively in residential use and is not exempt property, and a proportionate share of land. Property is considered to be in residential use if the use is within a “Residential Use Category” as defined by Chapter 33.920 of this Code;. For a condominium, all condominium units and their undivided interests in the common elements shall be treated as a single property; and

d.  Section 6.06.260 E, Lloyd Business District Fee Rates for Engaging in Property Management Activities, is amended as follows:

E. The Lloyd Business District license requirements shall not apply to exempt property. For purposes of this Section, “exempt property” means exempt property as defined in Section 6.06.020 I and also means exempt residential property. For purposes of this Section, “exempt residential property” means a dwelling unit property which is owner occupied dwelling units, as defined in Chapter 33.910 of this Code, and any common space associated exclusively therewith; that is owner-occupied and has its own separate water service; single room occupancy housing, as defined in Chapter 33.910 of this Code; low income housing; and subsidized housing. For purposes of this Subsection, low income housing is dwelling units available for rent at rates that are considered affordable, under federal affordability standards in effect on July 1, 1997, to persons earning 60 percent or less of the Portland region median income as identified in the records of Metro as of July 1 of each year. For purposes of this Subsection, subsidized housing is housing units available for rent at below market rates because either the units qualify for federal income tax benefits under Section 42 of the Internal Revenue Code, as in effect on January 1, 1997; or the units are subsidized through United States Department of Housing and Community Development Section 8 subsidies, as in effect on January 1, 1997, or other public or private organization subsidies. Subsidized housing includes but is not limited to student housing owned by the Oregon State System of Higher Education and housing owned by non-profit organizations that is subsidized through charitable contributions and grants.

BACKING SHEET INFORMATION

AGENDA NO. 813, 851-2009

ACTION TAKEN: JUN 10 2009 PASSED TO SECOND READING JUN 17 2009 9:30 A.M.

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 182925