What is the Jory Apartment TIF District?

The City of Salem is working to increase the supply of affordable housing. This goal is a top priority in the City’s Strategic Plan. To support this effort, the City Council and Salem’s Urban Renewal Agency created a new Tax Increment Financing (TIF) District. This district will help encourage the development of affordable housing in a residential project on the former North Campus of the State Hospital site.

Why is the Jory Apartment TIF District Important?

Affordable housing is essential for creating a community where everyone has a safe and stable place to live. Many families in Salem struggle to find housing they can afford, and this project is one way the City is addressing that challenge. By supporting affordable housing, the City is helping to make Salem a more inclusive and livable place for all residents.

This TIF District is designed to encourage developers to include affordable housing in their projects. It provides financial incentives that make it easier for property owners to offer lower-cost housing options. This approach benefits the community by increasing the availability of affordable homes while supporting the City’s long-term goals.

How Does the TIF District Work?

The Jory Apartment TIF District works by offering a partial property tax rebate to the property owner. Here’s how it works step by step:

1. The property owner pays property taxes to the County each year, as usual.
2. Instead of sending these taxes to all the overlapping taxing districts, the County gives the tax revenue to Salem’s Urban Renewal Agency.
3. The Urban Renewal Agency uses this money to provide a rebate to the property owner.

In return, the property owner agrees to include affordable housing units in the development. This system helps make affordable housing financially viable for developers while meeting the needs of the community.

The TIF district is within, but does not abut, D Street NE, Park Avenue NE and Center Street NE. The western boundary of the district is 25th Street NE.

What projects are proposed in the Jory Apartments TIF District Plan?

There are two planned activities in the TIF District Plan and Report. First, a property tax rebate to the property owner of up to 97 percent of the property taxes collected by the Jory Apartments TIF District. The second activity identified in the Plan is the City's administration of the program using the remaining three percent of the taxes received. The property is State owned and not generated any property tax currently.

What level of affordability is expected as a result of the District?

The developer intends to develop and maintain 36  of the multi-family units for individuals earning an average of 60 percent of the Area Median Income.

How long will the TIF District be open?

The TIF Plan and Report indicate a maximum amount of spending ($20 M) and duration for the Plan (41 years).