Here's an example of what I'm referring to for Tacoma, WA
On the whole are these generally not good deals? (e.g. working with the government is a huge pain and you can do better working on other deals that don't involve them?)
Curious if anyone has done any deals like this before.
I think the case may be unique as I do not ever remember any other city offering the same 8 to 12 year tax exemptions for creating mulifamily units. I would guess this is a case by case situation. I would not create the units if I did not already plan to. However if it's already within your plans why not apply and try to get the exemption for your units as I see it as a big advantage personally and for anyone who buys your units during the exemption period.
The motivation of Tacoma is obviously to address a housing shortage and they are working toward getting as many new rental units on the market as they can get.
They have gone through great length to create and offer this new tax incentive so I see no reason why not to trust it and the procedure for applying does not seem to be overly complicated or burdensome.
My understanding is that the tax is for the creation of new rental units on the market not for existing rental units so the tax holiday is not for existing units but for newly created units such as would be the case for additions and new construction. Might be a good time to do remodels and conversions where one of more units would be created and also a good time to bring new construction projects of multifamily units onto the market as well.
Hey Gilbert, thanks for the advice.
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