Issue No. 24-010 | August 9, 2024
Flourish Living, a non-profit organization committed to making affordable housing accessible to everyone, is pleased to announce its inaugural Board of Directors. The board members bring a wealth of experience and expertise in the real estate and housing sectors. Read more here.
Reach out to me if you are interested in learning more about how Flourish Living partners with the real estate community and state and local policymakers to craft attractive incentives for the creation and preservation of affordable housing.
Notable property tax developments:
- Georgia > Fulton County’s Board of Commissioners is at an impasse over setting the property tax rate, with their last session ending without a decision, leaving the rate at 8.87 mills. This deadlock could have significant legal and financial consequences, as it delays the distribution of tax bills and potentially affects year-end revenue collection. The debate centers around maintaining the current rate versus a slight cut, amidst rising property valuations and budgetary pressures that may necessitate tapping into reserve funds or implementing cost-cutting measures. Read more here.
- Massachusetts > Boston Mayor Michelle Wu’s proposed property tax bill, aimed at increasing the city’s commercial property tax rate to alleviate residential tax burdens, appears to have stalled in the legislative process. Despite approval from the House and a compromise to scale back the bill’s scope, the Senate did not address the proposal before the end of the formal session. The bill’s failure to pass could result in significant tax increases for Boston residents, as it was designed to offset anticipated spikes in residential taxes due to falling commercial property values. Read more here.
Notable multifamily developments:
- Texas > A recent survey by the University of Houston and Texas Southern University reveals that 90% of Texans view housing affordability as a significant issue in their area, with the concern spanning across all demographics. The study highlights that housing costs are causing financial strain for many, particularly among Black and Latino Texans, and suggests a need for government policies to increase affordable rental housing. As Texas faces a housing affordability crisis, the survey underscores the urgency for solutions to ensure the American Dream of homeownership remains attainable for residents. Read more here.
- The YIGBY Movement > In response to America's affordable housing crisis, churches are increasingly partnering with developers to transform underutilized church properties into affordable housing units. This collaboration is seen as a potential solution to the dual challenges of declining religious participation and the growing need for affordable housing. The initiative aims to develop thousands of housing units on faith-based properties by 2025, addressing the housing shortage in a sustainable and community-focused manner. Read more here.
- Affordable Student Housing > Universities are recognizing the growing importance of building affordable housing for graduate students, but they face challenges such as inflation and rising interest rates, which may slow down these projects. Despite these constraints, there is a push to partner with private developers to address the persistent affordability issues, especially as graduate students often carry higher student debt burdens. Moody’s report suggests that while the market for graduate student housing is narrower and more price-sensitive, the low vacancy rates and expected rent growth indicate a strong demand for such developments. Read more here.
- Equity Residential > Equity Residential has agreed to purchase an 11-property apartment portfolio from Blackstone for $964 million, a transaction that marks the largest multifamily purchase by a public REIT in the U.S. in the past seven years. The properties, located in the growth markets of Atlanta, Dallas/Ft. Worth, and Denver, comprise 3,572 units and are expected to enhance Equity Residential’s presence in these regions. This strategic acquisition is set to close in the third quarter of 2024 and is aligned with Equity Residential’s goal of increasing its annual net operating income from these high-growth markets. Read more here.
