The City of Beaverton now has Vertical Development Housing Zones (VHDZ) in the City. The City has designated three (3) areas of the City where new mixed use housing is encouraged to be developed. The maps below shows the locations of these VHDZs.
Vertical Housing Development Zones
The Vertical Housing Program is a partial property tax exemption program for new mixed use development. The program is administered by the Oregon Housing and Community Services (OHCS) Department in Salem. To qualify, a project must have improved, leasable, non-residential development on the ground floor and residential development on the floors above. The exact method for calculating the property tax exemption is spelled out in the Statute, but generally for each full floor of residential use above the non-residential development, there is an up to 20 percent property tax exemption.
The partial property tax exemption applies only to the building value and not the land value. The property tax exemption may be for up to 10 years. The maximum property tax exemption is 80 percent of the building value. If affordable low-income housing is included in the proposal, land value may also be exempted from property tax.
The City’s role in the VHP is limited to defining the locations of VHDZs and the submittal of an application for a VHDZ to the OHCS. The City has completed this step. However, this is a tool the City has adopted to encourage new investment and new mixed use residential development in underutilized areas of the City. Therefore, the City is committed to providing assistance to property owners or developers who would like to pursue this program.