The Single Property Tax Increment Financing (TIF) District provides a financial incentive tool in the form of a property tax rebate for the development of new construction affordable housing. The establishment of a TIF is guided by Oregon State Statue which includes a public outreach process and City Council approval.

The City of Salem approved its first Single Property TIF, Jory, in 2020.

As the need for affordable housing continues, the establishment of program objectives was developed which outline the type of projects eligible and criteria for initial project analysis to begin.

• Proposed project must incorporate affordable housing.
• The level of affordable housing should equal 15% of the total units or 20 units, whichever is greater.
• Examples of affordable housing include rent at 80 AMI or less, annual rent increase caps less than the statutory requirement, etc.
• Project must be located within the City of Salem municipal boundaries.
• Project must have a development concept
• Proposed project is not utilizing additional property tax exemption benefits.

The following costs are to be incurred by the property owner/development team:

• Current property survey and legal description.
• Super notice as required per ORS 457.085

Affordable housing projects have a significant financial benefit in comparison to market-rate housing projects as it relates to System Development Charges (SDCs).  Affordable housing projects are either fully or partially exempted from paying SDCs, where market-rate projects pay SDCs, generally in the range of $8,000 per unit.

The following steps are needed for an affordable housing project to meet the exemption from SDCs:

1. Confirm the project meets the affordable housing definition in Salem Revised Code 41.150(a)(5).
2. Provide a draft deed restriction for review by the City Attorney’s office. SDC exemptions are based on a rate of 1/30th per year of affordability for a time period not less than 5 years and not more than 30 years, as elected by the applicant.
3. Submit development plans for building permit review.
4. Provide a recorded deed restriction prior to development permit plan approval.

For additional information or questions about SDC exemptions, please contact Development Services at 503-584-4646 or email developmentservices@cityofsalem.net.