The proposed property tax exemption in Portland would be from the "carrot" school of affordable housing incentives.
"Portland housing officials have proposed reviving a property tax break for developers who include affordable housing in their projects," reports Eliot Njus.
The policy has been proposed as a response to a glut of housing permits in the pipeline, but filed before the city implemented an inclusionary zoning policy that mandates a certain number of affordable units. There are about 10,000 units in the pipeline ahead of the city's inclusionary zoning policy—and since the policy took effect, permits have dropped off significantly.
"The incentive officials are seeking to bring back provides for a 10-year property tax exemption on all of a development's residential units in exchange for making 20 percent of the units affordable to households making 60 or 80 percent of the median family income," according to Njus.
Portland Commissioner Chloe Eudaly is quoted in the article saying the tax breaks can actually help developers create units, which can they be rented.
FULL STORY: Portland weighs reviving tax breaks for rent-capped housing
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City of Albany
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research