Issue No. 24-014 | September 16, 2024
Notable property tax developments:
- Nebraska > Nebraska State Auditor Mike Foley raised concerns about the increasing use of Tax Increment Financing ("TIF") for urban redevelopment projects, citing its potential impact on property taxes. In a detailed letter to lawmakers, Foley highlighted that over $121 million in property tax collections were allocated to TIF projects in 2023 alone, more than double the amount from a decade earlier. He emphasized the need for strict adherence to legal guidelines to balance economic development with reasonable property tax burdens. Read more here.
- Texas > The City of Houston is considering a property tax rate increase to address a budget shortfall and cover nearly $40 million in costs from recent disasters, including the derecho and Hurricane Beryl. Finance Department Director Melissa Dubowski highlighted that the proposed hike would reverse years of declining tax rates. This proposal comes as Houston maintains the lowest combined tax and fee rates among major Texas cities. Read more here.
- Washington, D.C. > Washington, D.C. approved its first three commercial-to-residential conversion projects under the Housing in Downtown program, granting the projects a 20-year tax abatement. This initiative, funded with $41 million, aims to add 8,400 housing units to the downtown area by 2028. The program requires a portion of the units to be affordable for households earning below the median family income. Read more here.
- Illinois > Hundreds of landlords in Cook County, Illinois, are leveraging a property tax incentive to preserve and create affordable housing. The program, known as Affordable Illinois, offers tax cuts to property owners who provide affordable apartments and make substantial renovations. This initiative, signed into law by Gov. JB Pritzker in 2021, has seen significant participation, particularly in Chicago’s South and West sides. Property owners report that the tax relief helps maintain affordability and fund necessary upgrades. Read more here.
Notable multifamily developments:
- Affordable Housing > Nuveen published its 2024 U.S. Affordable Housing Impact Report, examining the state of housing affordability in the U.S. and where Nuveen is impacting the market. Of particular interest is the discussion of the Esusu platform and the integration of solar energy to reduce resident energy costs.
- Arizona > The Arizona Research Center for Housing Equity and Sustainability issued its 2024 State of Housing in Arizona report finding that while housing supply is increasing in the state, it is still insufficient to meet housing demand.
- Demographics >
Jay Parsons
reports that young adults (20 to 34) in the U.S. will experience a decline of 947,000 people over the next decade, but that this demographic shift will not be as impactful as prior shifts in the 1980s and 1990s. Read more here.
- Massachusetts > The newly established Cambridge Affordable Housing Redevelopment Authority launched a $10 million fund to support affordable housing initiatives. This fund aims to address the city’s housing crisis by financing the redevelopment and preservation of affordable units. The Authority plans to collaborate with local developers and community organizations to maximize the impact of these funds. Read more here.
- Founders, Chung Ju-yung, founder of Hyundai - Listen here
- CBRE, Imagine: New thinking in affordable housing - Listen here
