Agenda - 09/30/1996 Workshop
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AGENDA
SEPTEMBER 30, 1996
TAX EXEMPT I PilOT HOUSING ISSUES
A. INTRODUCE PARTICIPANTS
Mayor/City Council members
Planning Commission members
Marion County Commissioner(s) and staff
B. MAYOR'S DISCUSSION
C. CITY STAFF OVERVIEW
D. GENERAL DISCUSSION
E. DISCUSSION BY AUDIENCE
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INTRODUCTION
Over the last few years there has been a growing number of community leaders and
the pubic at large who are concerned as to the number of single and multi-family
housing units in Woodburn that pay only a portion of their property tax or are tax
exempt.
As to how this program works. Oregon exempts low income housing from the
property tax. A Federal statute requires the Federal government to make payments
in lieu of taxes (PILOT) on tax exempt property. This is a means of compensating
local governments for services provided to Federally owned tax exempt property.
PILOT property payments equal 1 0% of the rent collected less utility payments. There
is no comparable program for privately owned tax exempted property. Consequently
property under Marion County Housing Authority management (but federally owned)
makes payments in lieu of taxes. Property owned by Farmworker Housing
Development Administration (private ownership) is not required to pay property taxes
or make payments in lieu of taxes. The attached sheet provides a breakdown of the
taxes secured by the City of Woodburn. No taxes are paid to the school or fire
district.
The other most often heard comment regarding the issue is that Woodburn appears
to be the primary recipient - excluding Salem - of this type of housing program in
Marion County.
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FAIR SHARE
In a cursory review of the other 19 incorporated cities in Marion County, with the
exclusion of Salem, it appears only Silverton provides PILOT status for 8 resid~ntial
units. In comparison Woodburn accommodates 19 single family dwellings and 95
multi-family dwellings. It is anticipated an additional 52 multi-family units will come
on line by next summer. The total PILOT or tax exempt residential properties in
Woodburn could total approximately 166 units. This number far surpasses the total
of all other Marion County communities combined and greatly surpasses, as far as city
staff is aware, any community of Woodburn's size in the Willamette Valley.
Some Community leaders see this as unfair. The fact that Woodburn should carry the
burden of accommodating the majority of tax exempt or PILOT properties in this area.
More commitment should be given to dispersing these properties to other communities
throughout the Willamette Valley. It has been suggested that a "Balance" be reached
with other communities in the valley. Inother words, !ill communities participate in
a "Fair Share" approach.
TAXES
The comment is often made that Woodburn tax exempt and PILOT programs cost the
city, and school district moneys to operate. The attached sheet provides some insight
into that issue. Lost revenue on PILOT properties is $27,000, and estimated lost
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revenue on privately owned, low income housing is $14,000. the City provides full
services to these properties, but with $41,000 less than if they paid property taxes.
Also attached is a housing need information sheet complied by the Three Valleys
Project that identifies the need for additional communities to become involved in
providing adequate housing for the "economically disadvantaged".
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CITY of WOODBURN
TAX EXEMPT RESIDENTIAL PROPERTY
September 1996
Computed Adual
Address Seriel Number Value Tax Payment Difference
W Uncoln 051W 07CB 9600 302.420 5.171
W Uncoln 051W 07CB 9300 572.640 9.792
Start $I 051W 18AC 5900 81.290 1.390
GeschwiIlLn 051W 19C 1100 70.700 827
Sycamore $I 052W 11AO 6200 73.400 1,255
Hal $I 051W 07CA 2100 n.110 1,319
Brandywine 051W. 18C8 4700 79.nO 1.364
Willow St 052W 11AO 2900 69.270 1.185
Oak St 051W 18BA 1170 75,240 1,287
Leasure 051W 07CB 9900 84.140 1,439
1st St 051W 070B 9400 73.870 1,263
Willow $I 052W 11AD 4100 78,890 1.349
Gatdl 051W IBM 7600 74.480 1,274
Start St 051W 1880 1400 56,350 659
McKinley 051W 178B 3600 69.870 1.195
8th St 051W 70CA 7200 74,600 1,276
Olive 052W 11AO 1200 80,040 1,369
Hawtey 051W 180A 4000 89.006 1,041
Brown 051W 18AC 6000 83.750 1.432
Broadway 051W 18AC 1500 70.850 1,212
N.2nd 051W 070B 8500 75,430 1.290
5th Nuevo A1manacer (1) 051W 0708
None (vacant land-not exempt) 051W 0708
None (vacant land) 051W 0708
100
200
300
?
211.800
?
?
36,218
?
o
36,218
o
(1) Nuevo A1mancer is on this parcel. Athough the Assessor's Office has not placed a value on the property
some conclusions can be drawn from values of similar propety in the area. Stonehedge with 190 units
Is valued on the tax rolls at $3.242.160. Applying that value to Nuevo A1manacer's 48 units produces
a value of $819,072. If this were assessed at the Woodbum rate of $17.11$1.000 the property taxes
would be $14,006. Fannworter Housing Development currently pays neither property taxes nor pay_
ments in lieu oftaxes on developed property.
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HOUSING NEED INFORMATION FOR MARION COUNTY
Compiled by the 3 Valleys Project
August, 1996
How much need is there for additional affordable housing?
There is a minimum of 60,642 people in Marion County who are considered economically disadvantaged,
and thus require affordable housing. Here is a simple profile:
40,374 - economically disadvantagedl year-round citizens 14 year +2
- 87.2% are White, 12.8% are Non-White3
- 22,743 are employed
- 3,761 receive Aid to Families with Dependent Children
20,268 - seasonal and migrant farmworkers4
The above figures do not show children in Marion County under the age of 14 years. There is also the
homeless population segment, of which only a few may be included in the figures above. A survey
conducted in March of 1996 revealed:
542 homeless people in various Marion County shelters5
- 141 were children
- 37 identified themselves as farmworkers
- 48 people were at the Woodburn Resource Center or House of Zion
Housing assistance in North Marion County is currently being provided by the Marion County Housing
Authority, which subsidizes rent for 1,500 families who are unable to find low-income housing. 6 The
term "families" includes Senior Citizens living on fixed incomes. In Woodburn alone, between 350 and
450 families receive these subsidies, while an additional 19 families live in Housing Authority owned
homes. There are also approximately 120 applications being taken each month outside the SalemlKeizer
area, with the majority for Woodburn, Silverton, and Stayton.
The current farmworker housing in the city of Woodburn totals 92 units housing mostly families.7
Silverton has an 8 unit farmworker housing project In Marion County there are also 30 On-Farm Labor
Camps with 166 units providing shelter for a total (legally) of 1,268 people. Only 10% of these units
were in full compliance with housing standards.8
In Woodburn, 74% of the people renting an apartment, duplex or home, are charged between $500-
$749 a month.9
1 US Federal Poverty Guideline, i.e. a family offour earning less than $]5,600 annually.
2 Oregon Employment Department, Marion County SociallDemograpbic Profile, June, 1996.
3 Workforce Analysis Section, OED, February ]5, ]996.
4 Marion County Migrant Labor Task Force, November, ]995, and ]989 Northwest Primary Care Assoc. Profile Project Annual
Review.
S Oregon Housing and Community Services, March, 1996.
6 Marion County Housing Authority, August, ]996.
7 Nuevo Amanecer and Marion County Housing Authority, August, ] 996.
a Oregon Fann Labor Housing Survey, Oregon Housing Agency, 199].
9 United States Census, ]990.
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To THE MAYOR AND MEMBERS OF WOODBURN'S CITY
COUNCIL
OVER THE PAST SEVERAL YEARS, WE HA VE BECOME
INCREASINGLY ALARMED ABOUT THE EFFECT THAT TAX
EXEMPT HOUSING IS HAVING ON OUR COMMUNITY. WE
ARE ALL EX-MAYORS. WE HAVE ALL DEALT WITH
BUDGETS. WE ALL KNOW THAT PEOPLE NEED SERVICES,
AND THAT TRANSLATES INTO THE DEMAND FOR MORE
POLICEMEN, MORE FIREMEN, MORE PARK EMPLOYEES,
MORE LIBRARIANS, MORE TEACHERS. HERE IN
WOODBURN THESE SERVICES ARE PAID FOR THROUGH
THE PROPERTY TAX.
MARION COUNTY HOUSING AUTHORITY OWNS 63
HOUSING UNITS IN WOODBURN, 19 HOUSES AND 44
FARMWORKER APARTMENTS HOUSING ABOUT 250
PEOPLE. THESE PEOPLE ALL USE CITY SERVICES AND
THE SCHOOLS. LAST YEAR MARION COUNTY PAID
$ 10,930 TO WOODBURN IN LIEU OF PROPERTY TAXES,
$ 173 ON EA CH UNIT. THIS MEANS THA T A $60,000
HOUSING A UTHORITY LIVING UNIT PA YS $ 1 73 WHILE A
WOODBURN TAXPA YER WITH A $60,000 HOUSE MUST
PAY$1020. THIS IS NOT FAIR TO WOODBURN
TAXPA YERS.
***
BECAUSE OF GROWTH IN OUR CITY, WE ARE NOW FACING
SUBSTANTIAL COSTS FOR SEWAGE, WATER, AND STREET
IMPROVEMENTS. IN A COMMUNITY WITH A WELL-
BALANCED ECONOMY, THESE IMPROVEMENTS ARE EASILY
FINANCED THROUGH BONDING PROGRAMS. BUT
WOODBURN DOES NOT HAVE A WELL-BALANCED
ECONOMY u_u 62.9% OF OUR RESIDENTS ARE IN THE LOW
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TO MODERATE INCOME BRACKET. OF THE 19 CITIES IN
MARION COUNTY ONLY GERVAIS AND IDANHA HAVE
POORER PEOPLE THAN WOODBURN HAS.
THE HOUSING AUTHORITY'S PRACTICE OF PUTTING TAX-
EXEMPT RENTAL UNITS IN WOODBURN ATTRACTS
INCREASING NUMBERS OF LOWER INCOME PEOPLE TO
OUR CITY, DRIVING OUR PER CAPITA INCOME LEVELS
DOWN EVEN FURTHER. WE OBJECT TO THIS PRACTICE.
***
WE RESENT MARION COUNTY HOUSING AUTHORITY'S
SINGLING OUT WOODBURN TO BEAR THE BRUNT OF TAX-
EXEMPT F ARMWORKER HOUSING. AFTER CALLING CITY
OFFICIALS IN VARIOUS COMMUNITIES, WE LEARNED THAT
ST. PAUL HAS NO HOUSING AUTHORITY UNITS, HUBBARD
HAS NONE, GERVAIS HAS NONE, CANBY AND MOLALLA
HAVE NONE, MT. ANGEL HAS NONE, SILVERTON HAS ONE
PROJECT WITH 8 UNITS. THESE COMMUNITIES ARE ALL
AGRICUL TURAL CENTERS. YET WOODBURN, WITH ONLY
ONE F ARM----A 1 77-ACRE MECHANIZED OPERA TION---HAS
44 MARION COUNTY HOUSING AUTHORITY FARMWORKER
UNITS HOUSING AT LEAST 1 75 PEOPLE.
THE HOUSING AUTHORITY SHOULD INSURE THA T OTHER
CITIES IN NORTH MARION COUNTY ASSUME THEIR SHARE
OF THE FARMWORKER HOUSING BURDEN. WOODBURN
HAS MORE THAN ITS SHARE.
***
BESIDES THE MARION COUNTY HOUSING AUTHORITY
STOCK OF 63 TAX-EXEMPT LIVING UNITS, WOODBURN
-
PRESENTLY IS HOST TO ANOTHER 50 TAX-EXEMPT
LIVING UNITS, WITH THE POTENTIAL FOR 53 MORE.
... NUEVO AMANECER FARMWORKER HOUSING PROJECT
ON HWY 214 HAS 50 UNITS HOUSING 250 TO 275
PEOPLE
... A SECOND PHASE PROJECT OF 41 UNITS, HOUSING
200 TO 225 PEOPLE, IS PLANNED FOR THE NUEVO
AMANECER SITE.
... ON THE ORA WING BOARD RIGHT NOW IS YET ANOTHER
PROJECT, ESPERANZA COURT, A 12 UNIT PROJECT
DOWNTOWN, TO HOUSE PROBABLY 60.
IF ALL THIS TAX-EXEMPT FARMWORKER HOUSING IS
BUlL T, WOODBURN WILL HAVE MORE THAN 550 PEOPLE
USING CITY SERVICES AND OUR SCHOOL SYSTEM AND
PAYING NOT ONE CENT OF PROPERTY TAX. THIS IS
UNFAIR TO OTHER RESIDENTS IN WOODBURN WHO MUST
PAY PROPERTY TAXES.
WE OPPOSE THE PRACTICE OF CREA TING TAX
EXEMPTIONS FOR HOUSING PROJECTS. EVERY HOUSING
UNIT IN WOODBURN SHOULD PA Y PROPERTY TAX TO
SUPPORT CITY SERVICES AND SCHOOLS. EVERYONE
SHOULD PA Y HIS FAIR SHARE.
WOODBURN OREGON
SEPTEMBER 30, 1 996
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