Affordable housing developers are facing more production challenges despite the growing need for affordable housing projects. The most important government program that helps fund new affordable housing - the federal Low Income Housing Tax Credit (LIHTC) program - is providing less funding in 2017 than it did in prior years. At the same time, constructions costs (land, labor and material) for all types of developers are rising in most markets. These obstacles will likely result in less affordable housing development and preservation projects compared to 2016, even though numerous studies reporting a greater need.
There is some positive news for Fort Bend and Montgomery County property owners who were impacted by Hurricane Harvey. On Tuesday night, the Commissioner’s Court unanimously voted to enact article 23.02 of the Texas State Property Tax Code. Section 23.02 provides that “the governing body of a taxing entity that is located partly or entirely inside an area declared to be a disaster area by the governor may authorize reappraisal of all property damaged in the disaster at its market value immediately after the disaster.”
By James Sutton, Texas Market Leader, Dallas
& Jonathan Sanders, Client Service Leader, Houston
Numerous counties in Southeast Texas are hurting in the wake of Hurricane Harvey, which Governor Greg Abbot estimates could cost up to $180 billion in damages. Unfortunately, property owners are roughly a month away from receiving another costly punch in the gut – their 2017 property tax bills. Tax bills are based on property characteristics as of January 1st, which could be significantly different than they are now, having just experienced one of the most devastating natural disasters in American history.