Multi-Unit Property Tax Exemption

The Multi-Unit Property Tax Exemption program is enabled under state law for the purposes of stimulating the construction of multi-unit housing in the core area and to ensure use of the core area as a place where citizens have the opportunity to live as well as work. Projects eligible for the tax exemption include construction, addition or conversion of rental or ownership multi-unit housing within the MUPTE boundary (please see map below). Projects must include a minimum of five new housing units.

In July 2015 the Eugene City Council approved an ordinance Opens a New Window.  revising the Multi-Unit Property Tax Exemption (MUPTE) program. Revisions included changes to the criteria, process, and boundary, and removal of student housing as an eligible project type. The Required Public Benefit Criteria are:

• Compact Urban Development
• Green Building Features (ensuring building energy performance is 10% above code) 
• Local Economic Impact Plan (including support for local businesses, minority and women business enterprises, and ensuring compliance with laws)
• Moderate-Income Housing Contribution
• Project Design and Compatibility (including scale, form, and quality of the building; mixture of project elements; relationship to the street and surrounding uses; and parking and circulation)
• Historic and Existing Housing Sensitivity
• Project Need

The MUPTE Program Guide is available Opens a New Window.  online.
 
 MUPTE PDF application Opens a New Window. . 

Tax Exemption

The MUPTE program offers a property tax exemption on the new structure or incremental change in the property value of the building that comprises the project for a maximum of 10 years. Projects are required to address specific quality standards established in the program. Tax exemption requests are reviewed and approved by the Eugene City Council.
 
 The non‐financial materials included with the application will be reviewed by staff and a 30‐day written comment period will start. The financial information will be reviewed by an independent professional consultant. The City Manager will then convene the Project Review Panel to review the application’s conformance with program criteria and the consultant’s financial conclusions.
 
 Frequently Asked Questions About MUPTE Opens a New Window. 
 The administrative rules for the updated MUPTE program are available Opens a New Window.  online.  

The 2015 MUPTE update established a Review Panel, tasked with providing a third-party review of individual applications for the City Manager. The Review Panel:

• Reviews the project applications, including the consultant’s review of the project’s financial projections. 
• Reviews the applicant’s conformance with the Required Public Benefits and making recommendations regarding approval/denial of the tax exemption to the City Manager. 
• Reviews the project’s conformance with approval requirements midway through construction, at completion of construction, and during the exemption period. 
• Assists the City Manager in preparing an Annual Report on progress of the approved projects, program volume cap, and reporting documentation.

The Review Panel consists of two at-large neighborhood representatives selected by neighborhood association boards, an additional two representatives selected by the board of the neighborhood association in which the proposed project is located, and six technical professionals selected by the City Manager from the following six groups: architects/green building specialists; building trades unions; developers; environmental professionals; public health professionals; and human rights representatives. 

The MUPTE Review Panel started conducting annual project and program reviews in the fall of 2016. Read their review memos below:

• FY21 Program and Project Review 
• FY20 Program and Project Review
  
• FY19 Program Review
• FY19 Project Review  
• FY18 Program Review
• FY18 Project Preview
• FY17 Program Review Opens a New Window. 
• FY17 Project Review Opens a New Window. 
• FY16 Program Review Opens a New Window. 
• FY16 Project Review Opens a New Window.