With a housing shortage still quite prevalent in Harney County, the county court continued to discuss ways to ease the problem at its regular meeting on Wednesday, Sept. 2.

Greg Smith of the Harney County Economic Development Office attended the meeting by phone and informed the court that he’s been researching existing legislation as it relates to creating housing development. He noted that House Bill (HB) 2377, passed in 2017, authorizes a city or county to grant a property-tax exemption for newly constructed or rehabilitated rental property rented to households with annual income at or below 120 percent of area median income. The city or county can define what area median income is and adjust it for household size, as well as define what is “affordable.”

Smith said he visited with legislative counsel and asked whether additional language could be added that would enable the county court to allow a five-year exemption on property taxes for up to five homes. According to Smith, the counsel said it would be a simple amendment to the bill.

Smith then spoke with legislative leaders who said they can introduce the language, but advised that there would be a cap on the exemptions. Those eligible would be households with under $125,000 single income or $250,000 for dual income.

Smith also referenced HB2374, passed in 2019, which would allow credit against net income taxes for a portion of eligible costs of newly constructed single-family housing. Smith added that the bill is aimed at low- or medium-income housing.

Local realtor Colby Marshall told the court that, among the real estate companies that operate in Harney County, there are currently only five homes on the market that do not have a contract on them. There are six homes that have property attached to them, starting at about $250,000.

“To put that into perspective, last year at this point in time, in our office we had 25 to 30 houses per month that were active listings,” Marshall said.

He added that there is a significant demand for housing in the community driven by a number of things, including people wanting to sell their homes elsewhere around the state and move to Harney County.

Marshall said there has been discussion on allowing a tax waiver for new construction and major renovations for both residential and commercial properties. The waiver would go to the original contractor or developer, and then pass on to the first purchaser of that property. The five-year waiver would be for the increase in assessed value. Once the five-year period ended, the tax would raise to the assessed value.

Marshal also stated that a number of properties in the community no longer qualify for government loans because of age. However, most people qualify for government loans, rather than conventional loans.

The court agreed to consider what the next steps should be to spur new construction and major renovations.

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Fair Manager Jordon Bennett presented the court with an update on this year’s county fair. He said the major focus has been on public safety. Vendors will be more spread out, masks will be available and encouraged (but not enforced), there will be additional hand-washing stations around the grounds, the grandstands will be divided into three sections to promote social distancing, and public areas will be disinfected as much as possible.

Bennett also reviewed admission prices and exhibit procedures.

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Fred Flippence attended to talk about the Harney County Library Foundation and the Luce Fund.

Flippence provided the court with a history of the foundation. He explained that it was started because a foundation can apply for grants and other funds that are unavailable to the county.

The Luce Fund began when the family donated 10,000 shares of Time-Warner stock to the county to benefit the library. The county held on to the stocks for a number of years, and the stock increased substantially. However, it was brought to the county’s attention that it was violating state statute by owning stock. The county then sold the stock, and the money went into a library reserve fund and with the state pool. As the funds were used, the balance dropped. At that point, the Library Foundation and county court decided to put the money into the Oregon Community Foundation (OCF), allowing it to be invested once again. The earnings would be used to help the county fund the library. The funds were transferred to an endowment fund within the OCF, and the balance began growing again, reaching $2,153,082 as of June 30, 2020. The endowment fund also paid back $896,859 since 2007 for library operations.

Flippence also reviewed library activities and programs and discussed their value to the community.

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Brenda Smith of the High Desert Partnership (HDP) reported that the organization received a grant from the federal CARES Act through Business Oregon to provide technical assistance to small businesses in the county. She explained that five Eastern Oregon counties went together to file the grant application under HDP and were awarded $300,000. Each county receives $60,000, which has to be expended by Dec. 31.

The next county court meeting is scheduled for 10 a.m. Wednesday, Sept. 16, in the courthouse.