Multi-Unit Property Tax Exemption

The Multi-Unit Property Tax Exemption (MUPTE) is a tool that can shift a proposed housing development to being financially feasible. It is a state-enabled program designed to be an incentive of redevelopment of residential properties in city centers and along transit corridors. In Eugene, the City Council has authorized the use of MUPTE in the downtown area.

MUPTE allows new multi-family units (5 or more units) to avoid property taxes on the value of new residential construction for up to 10 years. The property continues to generate taxes for the land value during the exemption period.

The figure to the right shows how the costs of development and operating revenues are connected. The construction costs are all up-front and are made before the developer generates any revenue from the development. Typically, developers use a mix of equity (i.e., investor funds) and debt (i.e., bank loan). The developer estimates the future rents from the apartments and/or commercial space or sales from condominiums, to estimate if those expected revenues can cover the debt payments and provide investors with a return on their investment that is competitive with other investment opportunities. By exempting property taxes, MUPTE lowers the operating costs in the early years of a housing development so that it becomes financially feasible.

MUPTE Review Panel Open Position

The City is accepting applications for the Public Health technical representative seat on the MUPTE Review Panel. The panel provides third-party review of the MUPTE program for the City Manager and meets as needed to:

review new MUPTE applications;
review previously approved projects’ compliance with approval resolutions;
prepare annual reports on the progress of the approved projects, the program’s volume cap, and reporting documentation; and
annually review overall program efficacy.

The panel is comprised of neighborhood representatives (selected by neighborhood association boards and the neighborhood of the proposed MUPTE project) and six technical members selected by the City Manager. In addition to the open public health seat, the Panel includes an environmental professional, architect, developer, human rights representative, and building trades representative.

Members serve for three-year terms with an opportunity for renewal. To apply, please submit a letter of interest and provide evidence of technical expertise in the public health field. Letters of interest or questions should be directed to Dylan Huber-Heidorn at dhuber-heidorn@eugene-or.gov or 99 West 10th Avenue, Eugene, OR 97401.

Current Applications

The Community Development Division received an application for a MUPTE at 1059 Willamette Street. The developer proposes a 133-unit, mixed-use, mixed-income project on the site of the former Lane Community College downtown campus. Visit the website below for more information on how the project has evolved to bring housing development to this publicly owned property in the heart of Eugene.

1059 Willamette MUPTE Application

City of Eugene Project Website

Past Applications

City Council approved the Olive Lofts application on July 27, 2016. Due to financial challenges, the project has not been able to move forward.
Click here to download the Council Packet.

City Council approved the Gordon Lofts application with a 5-3 vote at their October 17, 2018, work session. Gordon Lofts is a 7-story, 127-unit apartment building with ground floor commercial space at the northwest corner of 6^th Avenue and Pearl Street and is part of the 5^th Street Market expansion. The building was completed in 2020.

Gordon Lofts MUPTE Application

Download Council packet materials

Watch Council’s discussion

The Review Panel conducted reviews of the project during and after construction See below for summaries of their reviews:
- Midway through construction review
- Post construction review

City Council approved the Ferry St. Manor application with a 5-3 vote at their September 11, 2019, work session. Ferry St. Manor is a 5-story, 50-unit apartment building located off of Ferry Street, north of 11th Avenue. The building was completed in 2020.

Ferry St. Manor MUPTE Application

Download Council packet materials

Watch Council’s discussion

The Review Panel conducted reviews of the project during and after construction. See below for summaries of their reviews:
- Midway through construction review
- Post construction review

City Council approved MUPTE applications for three proposed apartment buildings located on undeveloped lots in the Downtown Riverfront area at their March 9, 2022 work session. Council previously discussed the applications at their February 22, 2022 meeting. The projects would result in the addition of 381 new market-rate residential units in the Downtown Riverfront. The applications and links to Council materials can be accessed below. (Alternative scenarios for all three parcels were withdrawn from consideration by the applicant after submission; any references to Scenario B in either of the respective applications can be ignored.)

Parcel 3BC Application, Parcel 3BC MUPTE Approval Resolution

Parcel 7 Application, Parcel 7 MUPTE Approval Resolution

Parcel 9 Application, Parcel 9 MUPTE Approval Resolution

February 22, 2022 work session - materials and video (discussion only)

March 9, 2022 work session - materials and video (discussion and action)

The Review Panel conducts reviews of projects during and after construction. See below for summaries of their reviews:
- Parcel 7 - Midway through construction review

City Council approved the Downtown Riverfront Parcel 3A MUPTE application at their October 11, 2023, work session. The proposed project is a 7-story, 237-unit apartment building at the southeast corner of 4th Avenue and High Street and is part of the Downtown Riverfront redevelopment.

Downtown Riverfront Parcel 3A Application

Download Council packet materials

Watch Council's discussion