PUBLIC HEARING HB 2379, HB 2380; PUBLIC HEARING AND WORK SESSION HB 2535

 

TAPE 46. 47, A

 

HOUSE REVENUE COMMITTEE

FEBRUARY 17, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams

 

 

Witness Present:                        Marge Kafoury, City of Portland

                                                Mike Saba, City of Portland Planning Bureau

                                                Rep. Deborah Kafoury

                                                Gary Oxley, Oxley and Associates,

                                                    Oregon Association of Realtors

                                                John Chandler, Legislative Advocates, on behalf of

                                                    Oregon Building Industry Association and

                                                    Home Builders Association of Metropolitan Portland

                                                Andy Welch, Portland Development Commission

                                                John Christianson, Staff Member for Senator Margaret Carter

                                                John Blatt, Association of Oregon Community Development Organizations

 

Staff Present:                            Mazen Malik, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 46, SIDE A

 

006

Chair Shetterly

Calls meeting to order at 8:33 a.m.

 

OPENED PUBLIC HEARING ON HB 2379

 

010

 

016

 

 

025

 

040

Mazen Malik

 

Malik

 

 

Malik

 

Malik

Provided history and background on HB 2379, (Exhibit 1). 

 

Referenced sunset provision for property tax exemption for housing in urban distressed areas, (Page 226, Exhibit 2)

 

The -1 amendment addresses the sunset provision (Exhibit 3).

 

HB 2379 has a revenue impact (Exhibit 4), and fiscal impact, (Exhibit 5).

 

054

Marge Kafoury

Supports HB 2379 and HB 2380.

 

077

 

 

112

Mike Saba

City of Portland views this program as essential in providing incentives for new housing development, adding condominiums

 

Questions and discussion regarding price ranges for housing.

 

122

 

 

151

 

Questions and discussion regarding what percentage of Portland land mass is designated distressed?

 

Questions and discussion regarding program utilization analysis for purposes of sunset review.

 

175

 

 

 

180

Rep Shetterly

Refers committee to page 227 of Tax Expenditure Report for program evaluation. (See House Revenue Committee Minutes February 3, 2003, Exhibit 1). 

 

Questions and discussion regarding local option and taxing jurisdictions.

 

200

Rep. Deborah

Kafoury

Supports HB 2379 and HB 2380, citing need for more affordable housing.

 

 

205

Rep. Farr

This is not just for urban renewal districts?

 

210

 

213

M.Kafoury

 

M.Kafoury

Responded no. 

 

Purpose of -1 amendment to:

 

·         Make clear that pricing could vary, however, to meet program requirements must meet price cap.

·         Can accept applications that holding now for eligibility for tax year beginning July 1, 2003.

 

246

Gary Oxley

Supports HB 2379 and HB 2380 and -1 amendment for HB 2379, (Exhibit 7).

 

275

John Chandler

Supports HB 2379 and HB 2380 and -1 amendment for HB 2379

 

303

Chair Shetterly

Is City of Portland satisfied that the -1 amendment does what it was intended to do?

 

310

Andy Welch

The Portland Development Commission would like to suggest additional modifications to -1 amendment.

 

369

Rep. Barnhart

Stated when dealing with a sunset situation, the studies should be reviewed that describe why it worked in deference to earlier Legislature that passed the sunset.

.

372

John Christianson

Testified in favor of the bill on behalf of Senator Margaret Carter, (Exhibit 8).

 

397

Chair Shetterly

Closed public hearing on HB 2379

 

OPENED PUBLIC HEARING ON HB 2380

 

410

Chair Shetterly

For the record, during the public hearing on HB 2379, the Committee received testimony favorable to HB 2380 from Gary Oxley, John Chandler and Rep. Kafoury.

 

424

Malik

Provided history and background on HB 2380 (Exhibit 9), exemption information, (Page 2, Exhibit 2). Referred Committee to page 230 of Tax Expenditure Report for balance of evaluation, (See House Revenue Committee Minutes, February 3, 2003, Exhibit 1).

 

 

TAPE 46, SIDE A

 

012

M Kafoury

This bill modifies an existing statute and includes a new program.  The intent is to provide incentives to encourage affordable existing multi-family privately-owned housing.

 

028

Chair Shetterly

Like HB 2379 this is local option exemption, operating under same principal as HB 2379?

 

030

Saba

Answered affirmatively.

 

035

 

 

 

070

 

089

 

105

 

117

Saba

Provided history and support for HB 2380, which would affect affordable older multi-family housing that may be facing market pressure to increase rents.

 

Questions and discussion regarding scope and demand for program.

 

Questions and discussion regarding sunset provision for this bill.

 

Questions and discussion regarding multiple housing complexes.

 

Questions and discussion following up on demand for this program.

 

154

M.Kafoury

City has to balance what it believes are important social goals by providing incentives through the property tax base.  Expects this would be seldom used, but the affect may be important for populations that may lose their housing through gentrification.

 

164

Saba

Described fiscal impact as less expensive for city than buying the building which is what the city does under Housing Preservation Program.

 

169

Rep. Verger

This bill, allows for urban renewal districts, and a thorough public hearings process, it would not be an easy process for anyone?

 

171

 

Saba

Answered affirmatively.

174

Chair Shetterly

Closed hearing on HB 2380.

 

 

OPENED PUBLIC HEARING ON HB 2535

 

185

Mazen

Provided history and background on HB 2535, (Exhibit 11).

 

Provided revenue impact, (Exhibit 12). 

 

Scope of the bill to request sunset extension from 2004 to 2014. (Exhibit 2, Page 1).

 

209

Chair Shetterly

This is a local option tax exemption; any revenue impact at the local level is voluntarily encountered by the local government.

 

214

John Blatt

Supports HB 2535.  The bill would give local government the option of exempting property taxes property for non-profits providing affordable housing statewide, affecting some 9000 units (Exhibit 13).  Does require concurrence of the other taxing bodies to fully exempt the property.

 

270

Chair Shetterly

This is similar to the exemption with the housing authority which provides for continuous exemption without having to reapply each year?

 

277

Mazen

This is for non-profit organizations, which have additional requirements.

 

288

 

294

Blatt

They do have an annual reapplication process.

 

Discussion regarding language additions to 307.540 to 307.548, making it a part of chapter 307 by Legislative Counsel.

 

310

Barnhart

Familiar with the financial impact and success of this program.

 

312

Chair Shetterly

Close public hearing on HB 2535

 

 

OPENED WORK SESSION ON HB 2535

 

322

Rep. Williams

MOTION:  MOVED HB 2535 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

328

Rep. Farr

This is a very successful program in the City of Eugene.

 

330

 

ROLL CALL:  MOTION PASSED 9-0-0

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.

 

Rep. Farr will carry the bill.

 

339

Chair Shetterly

Closes work session and adjourns meeting at 9:23 a.m.

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Malik, “Staff Measure Summary HB 2379”, 1 page

2.       Malik, “Tax Expenditure Report” select pages 226, 229, 235

3.       Malik, “HB 2379-1”, 2 pages

4.       Malik, “Revenue Impact HB 2379”, 1 page

5.       Malik, “Fiscal Impact HB 2379”, 1 page

6.       Saba, “Testimony HB 2379”, 2 pages

7.       Oxley, “Testimony HB 2379 and HB 2380”, 1 page

8.       Christianson, “Testimony of Margaret Carter” in support of HB 2379 and HB 2380, 1 page

9.       Malik, “Staff Measure Summary HB 2380”, 1 page

10.   Saba, “Testimony HB 2380”, 3 pages

11.   Malik, “Staff Measure Summary HB 2535”, 1 page

12.   Malik, “Revenue Impact HB 2535”, 1 page

13.   Blatt, “Testimony HB 2535”, 1 page