Issue No. 24-008 | July 24, 2024
Notable property tax developments:
- Idaho > The Boise City Council has approved a $549.1 million budget for 2025, which includes a 3% property tax increase and the collection of $1.8 million in foregone taxes to cover rising operational costs and major projects. The budget, which was supported by a 5-1 vote, also includes a 3% raise for city staff, equivalent to the state’s employee raise. Despite the tax rate increase, the actual dollar increase for the average home will be lower due to slowing residential property value growth and a new property tax relief package. Read more here
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- Nebraska > Nebraska lawmakers are preparing for a special session to discuss various proposals for property tax cuts. Governor Jim Pillen’s plan involves a 50% average cut in property taxes by taking over school funding, funded by expanding the state sales tax and raising excise taxes. However, other senators, including Jana Hughes and Steve Erdman, plan to introduce alternative proposals for reducing property taxes or raising state revenues for property tax relief. Read more here
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Notable multifamily developments:
- Election 2024 > Reason examines how a Kamala Harris Administration might approach housing policy, observing that (1) the Biden-Harris Administration's record has been wanting, (2) Harris, as California's Attorney General, did not utilize the Office's authority to combat NIMBY policy actions by local governments, and (3) Harris's affinity for rent control having previously praised Oregon for adopting the first state-level rent control legislation in 2019. Policy proposals that we may see reemerge is a means-tested downpayment assistance program targeting individuals in low- and moderate-income census tracts and the Rent Relief Act, a bill advanced by then Senator Harris to provide a refundable tax credit to individuals that pay more than 30% of their income in rent. Read more here
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- Fundraising > Community Solutions, a New York-based nonprofit, raised $135 million for its Large Cities Fund, which purchases multifamily buildings to provide housing for the homeless, veterans, and low- to middle-income individuals. Since its inception in 2022, the fund has housed 335 people and acquired about 1,506 apartment units in various cities. The organization collaborates with federal and local governments, community leaders, and investors to identify and house individuals in need, with a focus on speed, efficiency, and the utilization of existing properties. Read more here
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- Multifamily Housing Starts > Fannie Mae’s July housing forecast anticipates an increase in multifamily housing starts in 2024 and 2025. Despite previous downward revisions, the 2024 forecast for multifamily starts was raised by 26,000 annualized units to 332,000 units. By the end of 2025, multifamily starts are expected to reach a rate of 370,000 annualized units, with the number of starts for 2024 and 2025 revised higher by 21,000 and 11,000 units respectively. Read more here
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- Multifamily Supply > The multifamily market has experienced an increase in new inventory levels, leading to a surplus that has resulted in higher vacancies and reduced rent growth. However, a new analysis by RealPage indicates that some markets are likely to see a decrease in inventories, potentially restoring balance and creating a more favorable environment for multifamily professionals. This comes after a significant dip in housing deliveries during and after the Global Financial Crisis, with Moody’s estimating an ongoing shortage of 1.9 million homes. Read more here
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