Nonprofit Corporation Low-Income Housing Property Tax Exemption

 

The Oregon Revised Statutes (ORS) authorize a property tax exemption for low-income housing held by charitable, nonprofit organizations.  The tax exemption is intended to benefit low-income persons and is available for qualifying property located in the City of Medford. Provisions that govern the City’s Nonprofit Corporation Low-Income Housing Property Tax Exemption (NCLIHPTE) Program were adopted with City of Medford Resolution 2022-94.

Application guidelines:

  • Charitable, nonprofit organizations that provide housing to low-income persons are eligible to receive the exemption.

     

  • The organization must be a 501(c)(3) or 501(c)(4) corporation. In addition, 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.

     

  • The organization must own or have a leasehold interest in the property. In addition, your nonprofit organization can qualify if it participates as the general partner in a partnership that owns the property, so long as the nonprofit organization is responsible for the day-to-day management of the property. In this case, the partnership must be listed as the owner.

     

  • An organization that only has a leasehold interest in the property must be obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in providing housing to income eligible households; or the rent payable by the corporation must have been established to reflect the savings resulting from this tax exemption.

 

  • Applicants must show that applicable properties will be occupied during the eligible tax year by income-eligible households as described in this application.

 

  • Applicants may also apply for the exemption for properties expected to be acquired after February 1st and before July 1st of the tax year but the application form must be submitted within 30 days of property acquisition.  Applicants who are leaseholders must have a signed leasehold agreement by the February 1st application deadline.

     

  • The property or portion of the property receiving the exemption, if occupied, is actually and exclusively used for the purposes described in section 501(c)(3) or (4) of the Internal Revenue Code.

     

  • Only the residential portion of property used to house low-income people or property being held for future development as low-income housing is eligible. For example, the commercial space in a mixed-use building would not be eligible for the exemption. Therefore, partial property tax exemptions may apply.

 

  • An application fee per account/taxlot is required to apply for this program:
  • Single Family Residential - $563.00
  • Multi-Family Residential - $965.00

 

The City of Medford administers this program and coordinates closely with the Jackson County Assessor’s Office. Please contact the Housing and Community Development Division via email at hcd@cityofmedford.org or by telephone at (541) 774-2380 with questions.

 

Back to top