Decisions/2026-346
Ordinance2026-346

Should Portland amend Property Tax Exemption for Low Income Housing Held by Nonprofit Organizations Code to extend the sunset date (replace Code Chapter 3.101)?

PHB administers the Nonprofit Low-income Housing Limited Tax Exemption (NPLTE) program authorized under ORS 307.540 through 548 and Portland City Code Chapter 3.101. The NPLTE program provides a property tax exemption for low-income housing held by eligible nonprofit organizations with the intent to develop and preserve affordable housing units.The state legislature extended the program sunset date to July 1, 2033, and PCC 3.101 currently reflects the prior sunset date of January 1, 2027. To continue providing this property tax exemption to support the operations of low-income housing in Portland, Council must approve this change.Additionally, the proposed code amendment adds clarity to the purpose, procedures, and implementation of the NPLTE Program. Finally, the amendment directly refers to the applicable ORS rather than repeating the text of the ORS in the code.

Official impact statement
See the official legal title

Amend Property Tax Exemption for Low Income Housing Held by Nonprofit Organizations Code to extend the sunset date (replace Code Chapter 3.101)

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01 · Understand it

What this proposal would actually do.

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What would change

PHB administers the Nonprofit Low-income Housing Limited Tax Exemption (NPLTE) program authorized under ORS 307.540 through 548 and Portland City Code Chapter 3.101. The NPLTE program provides a property tax exemption for low-income housing held by eligible nonprofit organizations with the intent to develop and preserve affordable housing units.The state legislature extended the program sunset date to July 1, 2033, and PCC 3.101 currently reflects the prior sunset date of January 1, 2027. To continue providing this property tax exemption to support the operations of low-income housing in Portland, Council must approve this change.Additionally, the proposed code amendment adds clarity to the purpose, procedures, and implementation of the NPLTE Program. Finally, the amendment directly refers to the applicable ORS rather than repeating the text of the ORS in the code.

Official proposal and impact statement
What would stay the same

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

Official matter record
Who may be affected

The NPLTE program has been continuously providing a property tax exemption for low-income housing held by eligible nonprofit organizations since the 1980s. In the current tax year (July 1, 2026 – June 30, 2027), there are 67 eligible nonprofits providing 17,389 low-income units across 700 different properties.

Official community impact statement
What happens next

Referred to Housing and Permitting Committee by Council President

Official matter record
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Financial implications

This legislation does not impact the City's overall budget, but the program itself does result in foregone property tax revenue. The legislation allows the City to continue administering the NPLTE program, which, in turn, allows the City to continue to support affordable housing development and on-going operations by alleviating the property tax burden on the agencies that provide the housing.

Official financial impact statement
Open questions
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Official Council agenda
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Official documents2 sources
Current proposal · not final actionOrdinance 2026-346

The proposed legal text currently moving through Council.

Open at Portland.gov
Read the full official text

The City of Portland ordains.Section 1. The Council finds:On behalf of the City of Portland, the Portland Housing Bureau ("PHB") administers the Nonprofit Limited Tax Exemption Program (the "NPLTE program") authorized under PCC 3.101 and ORS 307.540 through 548. The NPLTE program provides a property tax exemption for low-income housing held by nonprofit organizations with the intent to develop and preserve affordable housing units. To qualify for an exemption, the eligible organization must file an application each tax year.The current code reflects an outdated sunset date of January 1, 2027; however, the state legislature extended the program sunset date to July 1, 2033, as part of House Bill 2077.The City desires to continue administering the NPLTE program consistent with ORS 307.540 through 548 and the updated sunset date.The City also desires to add clarity to the purpose, procedures, and implementation of the NPLTE Program.NOW, THEREFORE, the Council directs:Replace City Code Chapter 3.101 as shown in Exhibit A.This ordinance shall be in full force and effect December 31, 2026.

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Source record
First discovered
Sep 29, 2026, 10:07 AM PDT
Last checked
Sep 29, 2026, 12:07 PM PDT
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c9d98357762f0e0f
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  1. SOURCE UPDATED

    Referred to Housing and Permitting Committee by Council President

  2. DOCUMENT PUBLISHED

    Referred to Housing and Permitting Committee by Council President