Multi-Unit Property Tax Exemption (MUPTE)

The Multi-Unit Property Tax Exemption (MUPTE) is a tool designed to incentivize housing development within the City of Albany’s current and future mixed-use centers supported by public transit.

This program provides up to 10 years of property tax exemption for new multi-unit housing investments within designated areas.

This program is enabled by Oregon Revised Statutes 307.600-637 and is locally implemented and controlled in accordance with City Council Ordinance 6069, Resolution 7468, Linn County Resolution and Order 2025-404, and the Program Guide and MUPTE boundary map.

This program is a recommended strategy in the Housing Implementation Plan, Albany’s Housing Needs Analysis, and Albany Comprehensive Plan.

Eligibility Criteria

Project eligibility is determined by six factors:

1. Location

Projects must be located both within Albany’s downtown revitalization area and within a quarter mile of a fixed route transit service within City zoning regulations.

MUPTE boundary map (pdf)

2. Number of Units

Projects must include at least five dwelling units to qualify for exemption.

3. Type of Project

Development or redevelopment of multi-unit housing projects that are newly constructed, additions to existing multi-unit housing, or structures converted in whole or in part from another use to dwelling units are eligible. The commercial portion of a project is eligible for an exemption if it meets one or more of the stated public benefit criteria. Student housing and transient/vacation occupancy are excluded. Land and improvements not exempt under these guidelines will continue to be taxed during the MUPTE period.

4. Construction Timeline

Project work (construction of physical improvements) must occur entirely within the program window: October 2025-January 1, 2032.

5. Financial Review

The City will contract with an independent, outside consultant (and confirm there is no conflict of interest) to review the project’s financial pro-formas submitted with the application on an ongoing, as-needed basis. The costs of that review are to be paid for by the applicant from within the application fee. Analysis of the project pro forma must establish whether the project would be built in the absence of the MUPTE benefit. The consultant will provide a completed memorandum summarizing review findings to city staff. See application for pro-forma guidelines. The MUPTE benefit awarded to a project will not exceed the gap in financing, as evidenced by the financial review.

6. Public Benefit

Affordability (Must include either option 1 or 2 below).

1. Fifteen percent (15%) of the housing units are affordable to households earning 80% or less of the area median income as determined annually by the Oregon Housing and Community Services Department, with an affordability period of at least 30 years (Deed Restricted)
2. Make a commensurate “in-lieu-of” payment to the City that is equal to 10% of total forgone taxes on new eligible improvements. Fees must be used by the city to facilitate or develop affordable housing. Project owner can choose to pay the fee annually during the abatement period or upfront with a five percent discount.

*Housing is affordable when no more than 30% of household income is spent on housing costs, including utilities.

To qualify for seven years of abatement, projects must also include two or more of the public benefits listed below, and to qualify for ten years of abatement, projects must also include three or more of the following public benefits:

• Placemaking, Open and Active Public Spaces. The project provides public amenities scaled to project size beyond city standards and are accessible by the public, such as a shared community space, plaza, green space, art, or spaces meant for people to spend time and build community. This could also include common meeting rooms that would not refer to a conference room internal to a business, but rather one that is available for rent or free use by any group. This amenity must be created for the primary purpose of being a public place.
• Public parking. Parking is designed to provide, to the greatest extent possible, shared parking facilities within a structure, parking structures, Level 2 and Level 3 electric vehicle charging stations, locations for car sharing, and safe pedestrian/bicycle connections between parking and adjacent buildings and streets. This provision is most valuable in dense areas where parking is already at a premium. Added public parking must have a substantial impact on parking supply.
• Childcare facilities. Provide childcare facilities within the proposed project and demonstrate how these will be provided beyond the duration of the exemption. Childcare facilities are defined as Oregon State-licensed childcare facilities. When applying, Site Plan included in application must demonstrate location of childcare facilities that meet all code requirements for proposed facilities and identify which childcare provider that the applicant plans to locate in the facility, if available at the time of the application.
• Economic opportunities or catalytic effect. The project will include spaces that have an economic catalytic effect that will be of greater benefit to the community than a small set of individuals. The project will work with contractors and/or companies that are owned by disadvantaged, minority women, or service-disabled individuals, or an emerging small business. Service or commercial uses that are permitted and needed at the project site but are not available for economic reasons also qualify under this category.
• Transit amenities when applicable or transit or pedestrian-oriented design elements. The proposal employs a mixture of project elements that encourage biking and transit use, enriches the streetscape, and supports community comfort and safety at all hours. Transit-supportive amenities such as covered shelters, a bench at the transit stop, Level 2 and Level 3 electric vehicle charging stations, and improved lighting are eligible public benefits. Dedicated pathways and pedestrian crossing treatments, wayfinding, and other items that contribute to a walkable downtown are other options. To meet this criterion, the applicant must submit a letter from Albany Transit System (ATS) stating that the applicant has coordinated with ATS on the proposed transit and mobility supportive amenities and demonstrate how the applicant considered the comments of ATS.
• Development or redevelopment of underutilized, blighted, or historically significant property. Applicant develops vacant or under-utilized sites, rather than sites where sound or re-habitable multiple-unit housing exists; The applicant must include in their application a detailed description of how this project will be remedying a severely blighted building or property or preserving a historic property or component. A project is characterized as blight due to obsolescence, deterioration, dilapidation, shifting of uses, or presence of brownfields. Preservation activities may include seismic retrofitting or improving a designated historic building.
• Accessible units beyond code requirements. Provide at least five percent (5%) but not less than two dwelling units of the total project dwelling units as Type A accessible; all other units within the project shall be TYPE C units, where not required to be Type B under the building code. This should not be construed as simply providing compliance with ADA code requirements. It would apply to provisions above and beyond those required by the code, such as including fully accessible dwelling units or providing an elevator.
• Energy Efficiency/Green Building Certification. The development is built using sustainable practices such as LEED, Earth Advantage, or a similar recognized green building program (with staff approval) or goes above and beyond building codes by at least ten percent (10%) for energy efficiency and sustainability. Alternative energy, green captures, etc., can also be considered of varying value as a public benefit. The applicant should provide preliminary certification in support of a claim under this category. Green building requirements apply only to residential occupancy areas and common areas, including hallways, stairwells, centralized HVAC or hot-water heating, and laundry facilities. The requirements do not apply to the commercial areas or ancillary amenities such as parking garages* and recreation facilities.
• Local Labor, Materials, or Ownership. To ensure that a substantial portion of the local tax benefit yields a benefit to the local community, the developer must provide proof of business registration in Oregon. Projects also qualify for this benefit if they can demonstrate that most of the hours spent on this project were compensated at 150% of the Linn County median wage.

Note that development still must include all improvements required by state and local building and planning regulations.

Application

Coming January 2026.

For more information, reach out to the Economic Development staff:

Sophie Adams
Economic Development Manager
541-917-7654

Jennifer Wehr
Economic Development Program Coordinator
541-791-0180