Opinion: Will L.A. have an office apocalypse or housing boom? Tax breaks might make the difference

Officials should undo needless restrictions in 2021 legislation to help tackle California’s housing crisis.

Consider an unconverted office building that had a current tax valuation of $50 million but would become a distressed sale at half that value in 2024. Suppose that sale results in a 50% decline in property tax revenue over the next 10 years. Now suppose that, instead, the building is converted into 200 units of housing while benefiting from a tax abatement program that means forgoing 50% of tax revenue over the same 10 years.

Beyond helping to meet Los Angeles’ ambitious housing production goals, adaptive reuse conversions can provide a more stable source of property tax revenue because the housing sector is much more insulated from factors such as remote work and other economic shocks affecting the office sector. And they can also help to maintain office prices through a reduction in supply. Both of these forces could place city and county finances at less future risk.

— which provided $600 million in the first year of the COVID pandemic to convert housing for individuals experiencing homelessness — have been quickly formulated and expanded in times of crisis.. Decisive action could increase housing production and lead to robust property tax revenue that could benefit Angelenos for decades to come.

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

New Jersey governor, lawmakers announce deal on property tax break for seniorsNew Jersey Gov. Phil Murphy and fellow Democratic leaders in the Legislature announced a deal Wednesday on a sweeping property tax rebate plan that had been a sticking point amid negotiations over the state’s more than $50 billion budget. Murphy, Assembly Speaker Craig Coughlin and Senate President Nicholas Scutari said homeowners 65 and older who make $500,000 or less will…
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »

City council passes property tax relief in first session with new membersSan Antonio’s City Council successfully doubled the city’s homestead tax exemption to 20%, the maximum allowed by state law.
Source: ksatnews - 🏆 442. / 53 Read more »