Rent-restricted property appraisal changes adopted

Senators passed a bill April 7 that adjusts the property appraisal calculation for rent-restricted housing.

LB356, introduced by Omaha Sen. Burke Harr, requires county assessors to use an income approach calculation for all rent-restricted housing projects to determine taxable valuation.

Rent-restricted housing project is defined as a project consisting of five or more houses or residential units that is financed, in whole or in part, with an allocation of federal low-income housing tax credits.

The bill creates the Rent-Restricted Housing Projects Valuation Committee, which will develop a market-derived capitalization rate to be used by county assessors when determining assessed value for qualified projects.

The committee will include the state tax commissioner and the following members appointed by the commissioner:
• a representative of local government assessing officials;
• a representative of the low-income housing industry; and
• an appraiser from the private sector.

Owners of a rent-restricted housing project are required to file a detailed income and expense data statement with the committee and the county assessor by Oct. 1 of each year.

The bill passed on a 45-0 vote.