Construction Excise Tax (CET)

UPCOMING NOTICE OF FUNDING AVAILABILITY APPLICATION (JULY 1ST-AUGUST 17TH)

Affordable housing developers and affordable housing program providers serving households in McMinnville are encouraged to apply for available funds, beginning on Wednesday, July 1st and due by Monday, August 17th at Midnight (Pacific Time).

City Staff Contact: Evan Hietpas, Interim Planning Manager/ Housing Planner, evan.hietpas@mcminnvilleoregon.gov , (503) 474-5170

Use of CET Funds (MMC 3.30.090)

City of McMinnville CET funds may be used to support two (2) different categories of funding that help support the provision of affordable housing options.

• The City may fund Developer Incentives allowed or offered pursuant to ORS 197.309(5)(c) and (d) and 197.309(7), including but not limited to:
  • system development;
  • land acquisition; and/or
  • local public improvements required by municipal governments.
• The City may fund Affordable Housing Programs in accordance with Section 9, Chapter 59, Oregon Laws 2016, including but not limited to:
  • rent buy-downs and subsidies;
  • down-payment assistance;
  • foreclosure-prevention assistance; and/or
  • preservation of existing affordable housing

Per the City’s 2026 Adopted Budget, there is $1,240,940 available for distribution. There is $588,520 available for Affordable Housing Programs, and $652,420 available for Developer Incentives. Depending on the proposals received, the City may award the full available amount, or may retain funds for future use.

Schedule

Eligible Proposals

• All proposals must provide housing for households earning 80% or less of the Area Median Income (AMI).
  • All awarded proposals shall record a deed restriction that requires the property remain affordable housing for a period of no less than sixty (60) years from the date of restriction.
• The entirety of proposed projects and programs must be located in or benefit households located only within McMinnville city limits.
• The funding request must be a part of a program or project that is organized by an organization, agency, or development team.
  • The City will not review applications submitted for projects that only serve the needs of an individual (1) housing unit. 
• Projects that support or provide a minimum of twenty (20) affordable dwelling units will be prioritized for funding. Projects with fewer units may still apply.

Review and Selection Criteria

The Construction Excise Tax program is intended to support unique projects that will make a meaningful impact on housing challenges facing McMinnville. CET funds should be awarded to projects that will use CET funds in the most efficient way possible or projects that may “fall through the cracks” of typical funding sources that are available through State and Federal programs.

Additionally, proposals that offer the best value for the benefit that they are providing will be most competitive for funding awards. The following criteria will be used by the Selection Subcommittee to review proposals and determine if funds should be awarded, and whether or not they recommend award the full funding request or a portion of the request based on the strength of the application. Applicants should provide responses to the criteria below to make their case of why they believe the project deserves to be awarded the funding.

Application Materials

Application forms will be posted on Wednesday July 1st. Please check back for more information soon!