Tigard's Vertical Housing Development Zone (VHDZ) encourages multi-story mixed-use development in two targeted areas of the City of Tigard.
Developers with experience in mixed-use multi-story projects may be interested in a City of Tigard program that provides a partial property exemption of 20 percent per floor. A developer can earn the partial property tax exemption by locating a qualified project in the City of Tigard’s Vertical Housing Development Zone (VHDZ).
Tigard’s VHDZ includes two areas within the city that are well-positioned for mixed-use multi-story development. Tigard’s downtown and the majority of the Tigard Triangle are eligible for a vertical housing tax exemption. The partial property tax exemption applies to new construction on the first four floors of residential development built above a non-residential ground floor. The maximum tax exemption on the new construction is 80 percent per year over the first ten years of the project.
Additional Exemption for Low-Income Housing
This partial property tax exemption is not limited to low-income housing, though low-income projects receive an additional property tax exemption. In addition to the exemption for the residential portion of a mixed-use building, the land would also be eligible for a partial tax exemption of 20 percent for each floor dedicated to low-income residential housing (maximum exemption is 80 percent).
Financial modeling show that a vertical housing based tax exemption moves some multi-story mixed-use projects from the red to the black. This tool helps close the gap for developers who are willing to take a risk in an untested market. Tigard’s VHDZ encourages private sector development that combines first floor commercial activity with residential capacity on upper floors. This mix of activity improves property values, the viability of local businesses and the quality of life for residents. It also diversifies local housing options, giving residents a wider range of housing solutions.
Does your development qualify?
The first step in determining if your firm is eligible is to contact Tigard’s Vertical Housing Development Zone Manager, Dylan Dekay-Bemis (503-718-2560) to see if your project meets the eligibility criteria:
- Does your development qualify as an eligible development?
- Is your development site within the zone?
- Will you meet the program requirements?