Albany City Council on Oct. 22 held a public hearing on a proposed Multiunit Property Tax Exemption (MUPTI) program intended to incentivize construction or conversion of multiunit housing near transit and amenities.

Staff presented a program guide and an implementation timeline that would establish city code implementing the state‑authorized exemption, adopt program guidelines by resolution and enter an intergovernmental agreement (IGA) with Linn County and other overlapping taxing districts. The city’s goal is to encourage housing near services and transit while ensuring public benefits accompany any tax exemption.

Sophie Adams, the city’s economic development manager, summarized key eligibility requirements drawn from state statute: projects must be within a quarter‑mile of fixed‑route transit, create or convert a minimum of five dwelling units, be completed within five years of approval and before Jan. 1, 2032, and undergo a third‑party financial review to show the exemption is necessary to make the project feasible. The program includes a public‑benefits menu; staff proposed that projects choosing an affordable‑housing option or paying an in‑lieu fee must also provide additional public benefits to qualify for 7‑ or 10‑year exemptions (two benefits for seven years; three or more for ten years under the draft guide).

Adams said staff added locally requested items — for example, local labor, materials or local ownership preferences and accessibility beyond code — to the state‑required benefit list. She also noted administrative elements that must be finalized before roll‑out: a yet‑to‑set application fee (staff estimated typical fees in the $4,000–$5,000 range to cover third‑party review costs), final contract with a financial reviewer, and signed IGAs with Linn County and the Greater Albany School District.

Community development director Matthew Rickers reviewed the program’s timeline: the council would adopt implementing code and a resolution establishing program guidelines and authorize staff to finalize an IGA with Linn County, then present the program to Linn County and the Greater Albany School District in November before finalizing materials for a Jan. 1 implementation.

Council questions during the hearing focused on the public‑benefits list and thresholds. One councilor asked staff to correct two formatting/typographic errors in the draft (separating public parking and childcare into distinct benefit bullets) and suggested tightening benefit thresholds so longer exemptions require a higher number of public benefits; that councilor said they would support more stringent requirements for the 10‑year exemption. Another councilor cautioned that increasing the required benefits could make projects less likely to use the program because of added development costs. Staff indicated those program details could be adjusted in the program guide before final adoption.

The public hearing is a statutory requirement under Oregon law for establishing such an exemption. No final council action on the ordinance or resolution is recorded in the transcript excerpt; staff asked council for questions and indicated next steps would include finalizing the fee, procurement of a financial reviewer, and presenting IGAs to Linn County and the school district in November.

What’s next: Council will receive an ordinance and resolution to consider final adoption, and staff will pursue IGAs with Linn County and the Greater Albany School District and finalize administrative materials for program launch on Jan. 1 (subject to council approval).