Legislation aiming to lower property taxes for affordable housing advances

Jan

2025

News Article

Legislation aiming to lower property taxes for affordable housing advances

Patroned by Del. Katrina Callsen, D-Albemarle, the bill would require that property assessors determine the fair market value of affordable housing units by income instead of by the likely sale value or how much it would cost to build them today – also known as the sales comparison and cost approaches. The language in existing Virginia law is confusing and has led to assessors choosing “whatever assessment value approach they want,” according to Callsen.

House Bill 2245 was devised to lower affordable housing property taxes and stimulate an industry that currently faces a shortage of approximately 300,000 homes, according to the Virginia Housing Alliance. Its advocates have argued that an income-based approach is the only fair way to assess affordable housing properties.

“It is essential that [our members’] apartments be taxed at the income that is being brought in because they need to match that income to the tax that’s being paid out. If they’re being assessed at a higher rate, they have to charge a higher rent,” said Scott Pedowitz, speaking in support of the bill on behalf of two apartment management organizations.

“Our goal is to have affordable housing at all price points across the commonwealth… and this is a fair and equitable way to ensure that we’re able to provide that,” Pedowitz said.

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