July 30, 2008
The City Auditor says Portland's housing tax abatement program - intended to spur construction of affordable housing in distressed neighborhoods - isn't living up to its promises. Gaps in oversight between the Portland Development Commission and the city's Bureau of Planning are partly to blame, the new report says. Just a few examples:
"We found that the City has done too little to ensure that property owners with tax abatements follow through to deliver the benefits they promised. For example, one apartment building developer in the Pearl District was required to make some units affordable, and to submit financial statements to prove that the abatement was needed for the project to succeed. However, we found no verification that project units met the affordability requirement, and the developer had not submitted the required financial statements to the City.
In another example, a condominium developer was required to sell units at a specific, affordable price as a condition of qualifying for the tax abatement. The condominiums were already built at the time the application was submitted and approved. Therefore, the abatement did not provide an incentive for new housing development. Six units were granted tax abatements, but we found that five of the units exceeded the initial sales price, did not meet the standard for having an affordable price, and should not have been approved."
For those wonkish enough to dive in, you can read the full report here.
posted by Joanne Zuhl