First Time Home Buyer Property Tax Abatement Program in Portland
What Is Property Tax Abatement in Portland?
NOTE: The information is current as of the time of publication. Program details and illegibility of property and borrower may change and are not guaranteed by Buyers Agent Portland, LLC.
Property tax abatement is a “freeze” 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?
Yes. 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?
- 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 homebuyer.
Who is an Eligible Homebuyer 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 a certain amount (adjusted annually). This limit is adjusted upward for households of five or more people.
- The homebuyer or any eligible subsequent homebuyer must apply and occupy the home throughout the exemption period.
Are there Disqualifications to the 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 homebuyer
- If the homebuyer or subsequent homebuyers fail to apply or qualify for the program
- If the sales price exceeds $275,000
- If the homebuyer fails to occupy the property throughout the exemption period
First Time Home Buyer Need to Knows?
There are usually application fees which apply. Application fees may be through a county and/or development agency such as Portland Development Commission or Multnomah County and must be paid within 90 days of purchase. Most common, is paying these fees through escrow at the time of closing. They will be reflected on the borrower HUD-1 statement. The PDC does adjust fees and requirements and are subject to change.
Portland home buyers looking at tax abatement programs in the Portland Metro area should set up a consultation with me to all thing TAX ABATEMENT!
- Buying a home for the first time — you NEED guidance. The listing agent (working for the seller/builder) will NOT guide a Buyer to the best possible terms and conditions possible. The listing agent works for the seller/builder and has no obligations in this regard.
- Buying a home for the first time is confusing and there is a maze of things that the home buyer is not familiar with.
- Toss in . . . TAX ABATEMENT, BUILDER CONTRACTS, ESCROW, INSPECTIONS, LENDERS, etc. and the task at hand is confusing. But not to me!
First Time Home Buyers can take advantage of this great property tax abatement in Portland.