3.20.020 Nonprofit corporation low-income housing exemption – Criteria.
A. The governing body shall use the following criteria to determine whether property is exempt from taxation as provided in this section:
1. The property is owned or being purchased by a corporation described in Section 501(c)(3) or (4) of the Internal Revenue Code that is exempt from income taxation under 501(a) of the Internal Revenue Code.
2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon.
3. The property is:
a. Occupied by low-income persons; or
b. Held for the purpose of developing low-income housing for a period of not more than six years. If the corporation requires additional time to develop the property for low-income housing and still seeks an exemption under this chapter, the corporation shall seek approval from the governing body for an extension of time in the manner described in BC 3.20.050.
4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501(c)(3) or (4) of the Internal Revenue Code.
5. The corporation:
a. Is not presently debarred, suspended, proposed for debarment, or declared ineligible by any Federal or State agency;
b. Has not, within the three-year period preceding the application, been convicted of or had a civil judgment rendered against it for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public transaction or contract under a public transaction; or been convicted of any Federal or State statutes of embezzlement, theft, forgery, bribery, falsification, destruction of records, making false statements, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty; and
c. Is not presently indicted for or otherwise criminally or civilly charged by a Federal, State, or local government entity with commission of any of the offenses enumerated in subsection (A)(5)(b) of this section.
B. In applying the criteria identified in subsection A of this section to determine whether the property qualifies for exemption, the governing body may consider any information provided by the corporation regardless of whether that information was included in the application or was otherwise provided by the corporation. If the corporation does not complete the application as provided under BC 3.20.030, however, then the governing body may reject the application.
C. For purposes of subsection A of this section, a corporation that only has a leasehold interest in property is deemed to be a purchaser of that property if:
1. The corporation is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in this activity on that property; or
2. The rent payable by the corporation has been established to reflect the savings resulting from the exemption from taxation.
D. A partnership shall be treated the same as a corporation to which this section applies if the corporation is:
1. A general partner of the partnership; and
2. Responsible for the day to day operation of the property that is the subject of the exemption. [BC 3.20.020, added by Ordinance No. 4619, 8/13/13; amended by Ordinance No. 4668, 12/1/15]