The Dalles City Council has adopted vertical housing zone policies as the City receives an application to take advantage of it. The vertical housing zone was created by the state in 2001 to encourage construction or rehabilitation of properties in certain areas to help provide more housing, with a partial property tax exemption for a maximum of ten years. The Dalles established the zone in 2014, encompassing an extended area of downtown. Mayor Steve Lawrence says the City has an application before them involving the Honald building. Assistant City Manager Matthew Klebes was appointed to manage the vertical housing zone.