Application and Election Process for Government Restricted Multiunit Rental Housing
(1)The property owner must file an application and election form with the county assessor to obtain a special assessment for government restricted multiunit rental housing (LIH) provided by ORS 308.701 (Definitions for ORS 308.701 to 308.724) to 308.724 (Rules). The application and election form must be filed on or before April 1 of the assessment year. The application and election form may be filed after April 1 and on or before December 31, if accompanied by a late filing fee equal to the greater of $200 or one-tenth of one percent of the real market value (RMV) of the property described in the application filed. Any application and election form that is filed late must be accompanied with the late filing fee. If the fee is not paid, the special assessment will not be granted. If the special assessment is denied by the assessor, the late filing fee must be refunded to the applicant.
(2)At the time the application and election form is filed, the property owner must elect the method the assessor is to use to determine the specially assessed value (SAV) of the property.
(a)If the property owner elects the income approach method, the application and election form must be accompanied by income and expense documentation. The required documents are:
(A)The rent roll for the month of December immediately preceding the date of application. The rent roll must show the rents charged for each unit and which units, if any, are vacant; and
(B)Annual income and expense statements for at least the three most recent years. Audited statements should be submitted, but unaudited statements may be provided if audited statements are not available; or
(C)Pro forma income and expense statements, but only if the project is new and historical documents are not available; or
(D)A combination of actual and pro forma income and expense statements for at least three years, if the property is not more than three years old.
(E)For mixed-use property the applicant must provide income and expense statements only for the portion of the property used as government restricted multiunit rental housing. Mixed-use property is property that consists of both government restricted multiunit rental housing and property used for other purposes.
(b)If the property owner elects the ratio method, the application and election form must be accompanied by the rent roll for the month of December immediately preceding the date of application. The rent roll must show the rents charged for each unit and which units, if any, are vacant.
(3)When one of the following events occurs after the initial application and election form has been approved, the owner must submit additional information to the assessor:
(a)The property owner wishes to change the election of the method used to determine the SAV; or
(b)New property has been constructed at the site, or new improvements are made to the government restricted multiunit rental housing; or
(c)The county assessor requests current income and expense statements.
(4)The county assessor will review the application and election form and accompanying documentation and determine if the property qualifies for special assessment.
(a)The application and election form must contain the information required under ORS 308.709 (Application procedure) for the assessor to approve the special assessment. If the application and election forms are incomplete, the assessor may request additional information from the applicant in writing, as necessary, for completion or clarification. The applicant must submit the requested information, in writing, to the assessor within 15 days of the date of the request or by the filing deadline, whichever is later, for the assessor to accept the application as a timely filing. If the applicant does not submit the requested information within the time required, the assessor may deny the application.
(b)The assessor must notify the applicant of the determination, in writing, within 120 days of the date the application was filed with the assessor’s office.
(A)If the application is denied, the notice to the property owner must include the instructions for appealing a denial of the special assessment by the assessor.
(B)If the application is approved, the assessor must add the following notation to the tax and assessment rolls each year: “LIH special assessment (potential penalty if disqualified).”
Rule 150-308-0710 — Application and Election Process for Government Restricted Multiunit Rental Housing,