(b) A county may designate as a vertical housing development zone an area that is subject to a goal exception for residential use approved under ORS 197.732.

(2) With the prior consent of the governing body of each city in which a proposed vertical housing development zone is to be located, a county may designate any area within each city that has given consent for vertical housing development zone designation as a vertical housing development zone.

(3) A city and a county, or any combination of cities and counties, may designate an area within each jurisdiction as a vertical housing development zone.

(4) A local taxing district may elect not to participate in a vertical housing development zone. A local taxing district that elects not to participate may continue to impose taxes on property otherwise exempt from ad valorem property tax under ORS 307.864.

(5) A city or county must consider the potential for displacement of households within a proposed vertical housing development zone before designating the zone.

(6)(a) Before designating a vertical housing development zone, a city or county, as applicable, must notify the local taxing districts, other than the city or county, that have territory in the proposed vertical housing development zone of the city’s or county’s intention to designate a vertical housing development zone.

(b) The notice required under paragraph (a) of this subsection must be sent by regular mail and must:

(A) Describe the proposed vertical housing development zone;

(B) Explain the exemption described in ORS 307.864 that would apply if the proposed zone is designated; and

(C) Explain the process by which a local taxing district may elect not to participate in the vertical housing development zone.

(c) Notice of the election of a district listed in ORS 198.010 or 198.180 not to participate in the vertical housing development zone must be received by the city or county, as applicable, within 30 days after the district receives the notice required under paragraph (a) of this subsection.

(7)(a) Not sooner than 60 days after sending the notice required under subsection (6)(a) of this section, the governing body of the city or county that seeks to designate a vertical housing development zone may adopt an ordinance or resolution designating the vertical housing development zone and describing the area and boundaries of the zone. The ordinance or resolution may include additional criteria for certification of a vertical housing development project that do not conflict with the requirements described in ORS 307.858.

(b) As soon as practicable after adopting the ordinance or resolution designating the zone, the governing body shall notify the assessor of the county in which the zone is located of the designation of the zone and the districts that elected not to participate in the zone. [Formerly 285C.453; 2015 c.507 §2; 2017 c.326 §2]