City Council Will Consider Construction Tax To Fund Affordable Housing
The Portland City Council will discuss a 1% construction tax to fund sorely needed affordable housing. The proposed tax would be the maximum amount allowed by a package of affordable housing bills enacted by the state legislature this year.
Commissioner Dan Saltzman will present the idea to city council in June, the Portland Tribune reports. He estimates a combined revenue of $5.4M from the residential development tax. Half of this revenue would go toward providing incentives for residential developers to incorporate affordable housing components into future projects. Another 35% of tax revenues would fund local affordable housing construction; the remaining 15% would be allocated for state-sponsored affordable housing.
Revenues from the commercial development tax are likely to amount to $2.6M each year and at least 50% would be allocated for affordable housing projects, though Saltzman is advocating it be entirely dedicated to these projects. [PT]
