First Time Home Buyer Programs in Portland | Tax Abatement and LTE Areas

If You're a First Time Home Buyer You May Want to Know What Is Property Tax Abatement in Portland?

Note:  I published this article a few months back but the opportunity areas have changed and are effective July 1, 2012.

Property tax abatements are like "freezes" of property taxes for a designated time.  Property tax abatements are designed to assist first time home buyers in Portland by abating taxes for a period of time.

Are There Any Tax Abatement Programs Currently in Portland for First Time Home Buyers?

Yes.  First time home buyers do have some options.  But with all things there are considerations that need to be met by the first time home buyer in Portland.

• The property must qualify
• The first time home buyers must qualify

How Does the Property in Portland Qualify for First Time Buyes?

• The property must meet the definitions of the Limited Tax Exemption (LTE) Program
• Properties in Portland meeting the Limited Tax Exemption tax abatement in Portland must be new construction in Portland and be in the Homebuyer Opportunity Area.
• The property must be located within a Homebuyer Opportunity Area. To see if a specific property is located within this area go to PortlandMaps.com  enter the address and click on the “Development” tab for confirmation the property is eligible under “Home Buyer Opportunity Area” (toward the bottom of the page).
• The proposed home must be a single-family home or condominium.
• The maximum sales price (or appraised value if an owner/builder) may be no greater than $275,000 (2010 limit adjusted annually).
• The home must be sold to an eligible home buyer.

 Who is an Eligible First Time Home Buyer in Portland?

• The total annual income of all owner occupants, which means they are on title to the home and also live there, may not exceed $72,000 (adjusted annually). This limit is adjusted upward for households of five or more people.
• The home buyer or any eligible subsequent home buyer must apply and occupy the home throughout the exemption period.

Click here to go to LTE Homebuyer page

Are there Disqualifications to this First Time Home Buyer Program?

• If construction is not completed within two years from the date of the ADE approval
• If the property is converted to a rental
• If the property is sold to an ineligible first time home buyer
• If the first time home buyer or subsequent homebuyers fail to apply or qualify for the program
• If the sales price exceeds $275,000
• If the first time home buyer fails to occupy the property throughout the exemption period

First Time Home Buyer Need to Knows?

There are application fees of $150 to the Portland Development Commission and $450 to Multnomah County within 90 days of purchase.  PDC does adjust fees and requirements and are subject to change. For ten years the Portland home buyers meeting the guidelines will not pay full property taxes on the assessed improvement value of the new construction. First Time Home Buyers can take advantage of this great property tax abatement in Portland.

 Home Buyer Opportunity Map - First Time Home Buyers - Tax Abatement in Portland

First Time Home Buyer Opportunity Map 2012 City of Portland

EBA Portland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time

EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.

Carla Muss-Jacobs 503-810-7192 Carla@carlahomes.com

BuyersAgentPortland.com

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