Reinventing Property Taxes
Property taxes are one of the more significant annual expenses associated with housing. Discounting property taxes is one way governments can incentive certain types of more affordable housing development.
Some communities offer a partial abatement or complete waiver of property taxes to owners of projects with affordable housing. In some cities these tax abatement programs exist as standalone programs independent of local inclusionary housing programs – either as incentives for voluntary provision of affordable units or to reduce the burden on otherwise subsidized affordable housing developments. But some cities offer tax abatements specifically designed to help offset the cost of providing inclusionary housing units.