The City of Eugene is considering new tax exemptions for housing developers.

The incentives would waive 10 years of property taxes for some apartments and homes in Eugene built by 2032. City Councilors voted unanimously on Wednesday to send the proposed policies to a public hearing.

“Because people need more places to live in Eugene, anything we can be doing to incentivize making it easier to do financially as quickly as possible is a wise decision,” said Councilor Mike Clark during Wednesday’s meeting.

According to the most recent Oregon Housing Needs Analysis, Eugene will require nearly 26,000 new housing units over the next two decades.

How the exemptions would work

One exemption would be for middle-income housing in areas within a quarter mile of a fixed transit line. Those boundaries include a large portion of the city.

These buildings would need to be affordable for residents who make 20% more than the local median income, or a maximum rate of $2,478 a month for a two-bedroom rental, if Eugene used its 2025 rent limit criteria.

The other exemption would apply to more expensive market-rate housing in core commercial areas, such as downtown and near the Valley River Center and Oakway Center.

Eugene’s Community Development Director Will Dowdy said at a meeting on Wednesday that private developers were already showing interest in the possibilities.

“I’ve heard developers say if you had these sorts of incentives where I would like to build, then property that I’ve been sitting on, I would be able to move that forward,” said Dowdy.

Some councilors drew comparisons between the new incentives and the Multi-Unit Property Tax Exemption, an existing 10-year property tax waiver for the greater downtown area.

MUPTE has drawn criticism from local activists, who’ve characterized it as a giveaway to rich developers. Proponents of the program argue that it makes otherwise infeasible developments possible, which yields tax revenue later on.

State loans

Councilors also discussed whether Eugene should join the Moderate Income Revolving Loan program, a state initiative that will loan funds to cities and counties, which can then loan or give that money to developers.

Those developers would get property tax exemptions for 10 years, but would be asked to make regular payments on their loans.

In meeting materials, city staff noted that there could be liability concerns if the developer is delinquent, as the city would still be on the hook with the state housing department to pay back the money.

City councilors decided unanimously to have a public hearing about opting in.

Nathan Wilk is a reporter with KLCC.

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News Source : https://www.opb.org/article/2026/02/14/eugene-weigns-new-tax-exemptions-for-housing-developers/