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Limited Tax Exemption - Detail Verified 08/23/10 Last Updated 08/04/10

Program Overview

Limited Tax Exemption - Detail Verified 08/23/10 Last Updated 08/04/10 is 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 eligiblitiy is Multnomah County (only on certain newly constructed homes within the Homebuyers Opportunity Area in Portland). The application fee is $ 650.

Who is eligible for this program?

Homebuyer must be the initial buyer of the property and must occupy the property as their primary residence. Homeowner must submit a completed Application for Certificate of Qualification along with all required supporting documents and pay total fees of $600 within 90 days of purchase of the property. The total annual income of all deed holders/borrowers occupying the home cannot exceed $71,200 (maximum adjusted for family size over 4). 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 designated Homebuyer Opportunity Areas. The builder must apply for and be approved for the program prior to getting certificate of Occupancy for the property. The sales price cannot exceed $275,000.

Benefit Details

The LTE program 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 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. Ten year property tax exemption Benefit: Offers income eligible homebuyers reduced property tax payments for a ten year period as long as the occupy the property as their principal residence. Homebuyer Counseling / Education Required: no Owner Occupancy Required: Yes Other Program Comments: The LTE is assumable for the remainder of the exemption period by a subsequent homebuyer provided the new buyer meets the current income limits for the program and they apply for and are approved for the program by PDC. Some newer existing properties available for sale may include the Limited Tax Exemption, also referred to as the Limited Tax Abatement program, for balance of the exemption period. For details call the Portland Development Commission at 503-823-3270.

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