Alan Arthur wrote:

 

“MN law that provides for non-profit property tax exemptions specifically
excludes nearly all affordable rental housing from the exemption.  “

 

My response:

 

Yes, that is true.  But lets not forget that the property taxes are based on
the value of the property.  The value of the property is based on the income
the property generates.  The income of “affordable housing” is less than it
would be if the property were not set aside as affordable.

 

I suspect this is obvious to many of you. The part that is surprising (to
me) is that we use TIF money to build affordable housing.  The purpose of
TIF is to use future property tax dollars to encourage development today.
If we use TIF money to develop affordable housing, we are not getting all of
the future tax dollars that the property could generate.

 

Does anyone know if this decreased value is taken into account when the TIF
allocations are calculated?

 

I hope this makes sense.

 

Regards, Bill Cullen

Whittier landlord.

 


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