(A) If the city determines that property that has received an exemption under this chapter in anticipation of future development of low-income housing is being used for any purposes other than the provision of low-income housing, or that any provision of this chapter is not being complied with, the city shall give notice of the proposed termination of the exemption to the owner by mailing the notice to the last known address of the owner, and to every known lender by mailing the notice to the last known address of every known lender. The notice shall state the reasons for the proposed termination and require the owner to appear at a specified time, not less than 20 days after mailing the notice, to show cause, if any, why the exemption should not be terminated.
(B) If the owner fails to appear and show cause why the exemption should not be terminated, the city shall notify every known lender, and shall allow any lender not less than 30 days after the date the notice of failure to appear and show cause is mailed to cure any noncompliance or to provide adequate assurance to the governing body that all noncompliance shall be remedied.
(C) If the owner fails to appear and show cause why the exemption should not be terminated, and the lender fails to cure or give adequate assurance of the cure of noncompliance, the governing body shall adopt a resolution stating its findings that terminate the exemption. A copy of the resolution shall be filed within ten days after its adoption with the County Assessor, and a copy shall be sent to the owner at the owner's last known address and to the lender at the last known address of the lender within ten days of its adoption.
(D) Upon the County Assessor's receipt of the governing body's termination findings:
(1) The exemption granted to the housing unit or portion under this chapter shall terminate immediately, without right of notice or appeal;
(2) The property shall be assessed and taxed as other property similarly situated is assessed and taxed;
(3) Notwithstanding O.R.S. § 311.235, there shall be added to the general property tax roll, for the property in question, for the tax year next following the presentation or discovery, to be collected and distributed in the same manner as other real property tax, an amount equal to the difference between the taxes assessed against the property and the taxes that would have been assessed against the property had it not been exempt under this chapter for each of the years, not to exceed the last ten years, during which the property was exempt from taxation under this chapter. The assessment and tax rolls shall show potential additional tax liability for each property granted an exemption under this chapter because the property is being held for future development of low-income housing.
(4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.
(Ord. 2018-06, passed 9-10-2018)