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Program: Limited Tax Exemption

Detail Verified 2/14/17 - Last Updated 1/9/17

Program Overview

A program that offers income-eligible homebuyers, who purchase specific pre-approved newly constructed homes, a limited property tax exemption for a ten year period. The property taxes due during the ten year exemption period will be assessed on improved value of the lot, but not the improvements themselves. During the exemption period the property taxes due are typically 1/2 or less than their normal amount. After the exemption period expires or if the owner ceases to occupy the property as their primary residence the taxes return to their fully assessed rate.

Location eligibility is City of Portland within Multnomah County (only on certain newly constructed homes).

Application Fee: $750

Who is Eligible for this Program?

Homebuyer must be the initial buyer of the property and must occupy the property as their primary residence. Homebuyer must submit a completed Homebuyer Compliance Verification Form along with all required supporting income documents at least 10 days prior to closing. Within 30 days of closing, homebuyer must pay total fees due and submit documentation of the closing.

The total annual income of all deed holders/borrowers occupying the home cannot exceed $73,300 (maximum adjusted for family size over 4).

Ten year property tax exemption

Ten year property tax exemption which, depending on their lender, may help the borrower increase their purchasing power or lower their qualifying debt ratios.

HUD Median Income Limits: 100%

Is this program for first time buyers only?: No

Property Eligibility Requirements

Pre-approved homes within the City of Portland. The builder must apply for and be approved for the program prior to obtaining their building permit.

The sales price cannot exceed $350,000.

Benefit Details

The Limited Tax Exemption (LTE) program offers income-eligible homebuyers, who purchase specific pre-approved newly constructed homes with the City of Portland, a limited property tax exemption for a ten year period. The property taxes due during the ten year exemption period will be assessed on the improved value of the lot, but not the improvements themselves. During this exemption period the property taxes are typically 1/2 or less than their normal amounts. Depending on the lender the reduced property taxes may allow the lender to increase the homebuyer's purchasing power or lower their qualifying debt ratios.

Benefit: Offers income eligible homebuyers reduced property tax payments for a ten year period as long as they occupy the property as their principal residence.

Homebuyer Counseling / Education Required: No

Owner Occupancy Required: Yes

Other Program Comments: The Limited Tax Exemption (LTE) is assumable for the remainder of the exemption period by a subsequent homebuyer provided the new buyer will live in the home during the exemption period.

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