The Multi-Unit Housing Tax Incentive Program (MUHTIP) is designed to encourage the construction of multi-unit housing in urban centers. These housing projects are intended to support public transit and create vibrant, livable communities in core areas of urban centers. By offering a tax abatement for qualifying projects, the program helps developers reduce costs and incentivizes the creation of housing that benefits the community.

The Multi-Unit Housing Tax Incentive Program tax incentive is a tax abatement of up to 10 years for new or converted, non-transient housing units, constructed within the designated boundary, that provide one or more public benefit.

Why This Program Matters

The Multi-Unit Housing Tax Incentive Program is important because it addresses the growing need for affordable and accessible housing in urban areas. By focusing on transit-supportive housing, the program promotes sustainable development and reduces reliance on cars, which can lower traffic congestion and pollution. Additionally, the program encourages developers to include public benefits, such as affordable housing units, which directly support residents with lower incomes. This program is particularly relevant to developers, city planners, and community members who are invested in creating equitable and sustainable urban growth.

Eligibility Requirements

To qualify for the Multi-Unit Housing Tax Incentive Program, projects must meet the following criteria:

1. Dwelling Units: The project must include at least two housing units. Transient accommodations, such as hotels or motels, do not qualify. 
2. Affordable Housing: For projects with more than 50 units, at least 15% of the units must be reserved for residents earning less than 80% of the area median income (AMI).
3. Location: The project must be located within the “core area” as defined in Salem Revised Code (SRC) 2.800(c) SRC 2.800(c).
4. Public Benefit: The project must provide at least one public benefit as outlined in SRC 2.815.
5. Transparency: Developers must comply with contractor and subcontractor transparency requirements.
6. Timeline: Construction must occur within the program's designated timeline established by the statue and ordinance. Projects must begin after January 1, 2022, and be completed by December 31, 2031, unless specifically extended under SRC 2.835.

Application Process

Developers interested in applying for the Multi-Unit Housing Tax Incentive Program are encouraged to follow these steps:

Step 1: Review Program Guidelines 

Carefully review the program guidelines to ensure the project qualifies.

Schedule a pre-application meeting with City staff. Submit a pre-application letter and attend a pre-application conference to discuss the project and receive feedback. 

Step 3: Submit Application 

Complete and submit the application form. Applications may be reviewed by other City departments and the City Council. Processing times can vary depending on the complexity of the project.

Subcontractor Transparency

Transparency documentation identifying each contractor, subcontractor and all sole proprietors performing work on the projects that have received either Multi Unit Housing Tax Incentive Programs (MUHTIP) or Urban Renewal Area (URA) grants with a grant exception must be filed with the City at the time building permits are obtained. The Subcontractor Transparency Form must be displayed at the job site and kept up-to-date until the completion of the project.

Subcontractor Transparency Form 

Additional information on URA grants:

• Fairview URA Grant Program
• North Gateway Rehabilitation Grant Program
• Riverfront Downtown Capital Improvement Grant Program
• West Salem Redevelopment Grant Program