Issue No. 24-013 | September 4, 2024
Notable property tax developments:
- Colorado > Gov. Polis, business groups backing Initiative 50 and Initiative 108, and Colorado lawmakers reached a property tax deal last week. Read more here
and read county assessors in Colorado offer their thoughts
on the deal.
- North Dakota > North Dakota’s upcoming ballot measure proposes eliminating property taxes, potentially making it the first state to do so. While this initiative aims to provide tax relief, it could lead to a $1.3 billion annual fiscal deficit and shift local revenue responsibilities to the state, undermining local control and economic competitiveness. Read more here
.
Notable multifamily developments:
- Federal Reserve > Economists at the Federal Reserve Bank of Kansas City report that multifamily property prices recently declined after reaching record levels due to low interest rates and high housing demand during the pandemic. The current drop is attributed to higher interest rates, slower rent growth, increased operating expenses, and a surge in new units available for rent. Despite these factors, the decline suggests a more pessimistic outlook among investors. Read more here
.
- Washington > The City of Snohomish implemented a new $20,000 per unit fee for affordable housing, specifically for Accessory Dwelling Units (ADUs), by requiring separate sewer and water connections. This decision, despite recommendations against it, significantly increases the cost of ADU construction, potentially impacting the availability of affordable housing. Read more here
.
- Oregon > The City of Portland adopted the 2024 Housing Production Strategy ("HPS"), which aims to address the city’s housing needs by planning for over 120,000 new units by 2045. This comprehensive strategy focuses on increasing affordable housing, enhancing tenant protections, and supporting equitable growth. Key initiatives include zoning changes to facilitate higher-density developments, incentives for affordable housing projects, and measures to prevent displacement of existing residents. The HPS also emphasizes sustainability and resilience, ensuring new developments are environmentally friendly and climate-adaptive. Read the HPS here
.
- Federal Home Loan Banks > The board chairs of the 11 Federal Home Loan Banks ("FHLBanks") sent a letter to Deputy Treasury Secretary Wally Adeyemo, emphasizing their commitment to addressing the housing crisis through new programs and increased funding for affordable housing. They highlighted initiatives such as supporting homebuyers, expediting multifamily rental projects, and expanding downpayment assistance. However, the FHLBanks oppose simply raising their Affordable Housing Program ("AHP") contributions to 20% of pre-assessment net income, arguing that this approach does not address the underlying complexities of the housing crisis. Instead, they advocate for collaborative efforts with the Treasury and the Federal Housing Finance Agency ("FHFA") to remove existing barriers and enhance their impact. This includes broadening access for Community Development Financial Institutions ("CDFIs") and reforming key programs to better support housing finance and community development. Read the letter here
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- Election 2024 > Vice President Kamala Harris and former President Donald Trump each unveiled housing plans to address America’s affordability crisis. Harris’s plan focuses on expanding federal funding for affordable housing, increasing tenant protections, and investing in public housing and rental assistance. In contrast, Trump’s proposal emphasizes deregulation, reducing zoning restrictions, and incentivizing private sector development to boost housing supply. Economists express skepticism about both approaches, citing potential challenges in implementation and effectiveness. Read more here
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