Established under state law in 2001, Vertical Housing Development Zones subsidize "mixed-use" projects to encourage dense urban-style development or redevelopment.
Specifically, an eligible project consists of ground-level commercial with one or more upper floors of residential housing that has been newly constructed, reconstructed or rehabilitated. The Downtown Eugene Vertical Housing Development Zone was established in 2003 (please see boundary map below).
The program offers a 10 year property tax exemption on the new structure, or incremental change in the property value of the building that comprises the project. The program grants a tax exemption of 20% for each floor of housing that is incorporated above ground floor commercial, with a maximum tax exemption of 80% for any single project. The exemption is effective upon initial occupancy or re-occupancy.
In order to receive the exemption, the project owner/developer applies to the Oregon Economic and Community Development Department for certification, prior to any relevant residential unit being ready for occupancy. The application is available through Oregon Housing and Community Services.