The City of Newberg provides a variety of incentives for affordable housing projects. Each of those incentives are listed below:

 

Construction Excise Tax (CET)

  • Implementation and programming for this incentive is currently being developed - the program is expected to be operating by the end of 2022.
  • The goal is to reduce development costs for affordable housing projects. 
  • City Council sunset the collection of the CET on May 1, 2023 by Ordinance No. 2023-2917. The Ordinance is in the Supporting Document section below.

Vertical Housing Development Zone (VHDZ) Tax Abatement Program

  • The purpose is to encourage development of mixed-use multi-story buildings with housing above commercial spaces in urban cores and to develop a larger base of mixed-use property in urban cores. 
  • To qualify, commercial uses must be designated on the ground floor and residential uses designated for all floors above the commercial use. Once a property is eligible for a VHDZ, property tax abatements are applied for a period of ten years.
  • The area of the VHDZ encompasses most of the downtown Newberg area and some outlying properties near downtown.
  • Click HERE to learn more about this project, including: a map of the zone area, list of opportunity sites, and specifics on how the tax abatement works. 

Property Tax Exemption 

  • Property or a portion of the property is exempt from taxation as provided under ORS 307.515 to 307.523
  • The property must be offered for rent; or held for the purpose of developing low income rental housing.
  • Low income housing is defined as housing for those with income at or below 60 percent of the area median income and on certain conditions income at or below 80 percent of the area median income.

Affordable Housing Trust Fund

  •  Funds are available to organizations (non-profit and for-profit) and individuals that provide affordable housing and/or related services within the City of Newberg. 
  • Up to $45,864 in loans/grants are available from the Trust Fund.
  • Learn more about the upcoming Notice of Funding Availability HERE

 

For more information contact:
Leanne Wagener | Assistant Planner
(503) 554-7768
leanne.wagener@newbergoregon.gov or planning@newbergoregon.gov