Case Study Tax Reduction: Section 515 Low-Income Housing Project

Tax Reduction: Section 515 Low-Income Housing Project

Results

0%

Total Reduction

$0

Total Tax Savings

Overview

Protax LLC, a leading property tax consulting firm, successfully secured a substantial 42% tax reduction for a Section 515 low-income apartment complex in Northern California. This case highlights the intersection of government policy, real estate valuation, and the crucial role of informed advocacy in supporting affordable housing.

Challenge

The property in question operates under a stringent 55-year federal agreement that limits both tenant eligibility and the return on investment for owners. In California, properties encumbered by such government contracts must be evaluated using specific methodologies mandated by law, making the assessment process particularly complex.

Solution

Protax conducted a thorough and data-driven analysis to build a compelling case for reassessment:

Results

Thanks to Protax LLC’s expertise, the property received a remarkable 42% reduction in its assessed value, leading to a substantial decrease in taxes. The financial benefits of this reduction directly impact the tenants, as the owner’s return is capped and regulated by the governmental program.

Conclusion

This case underscores Protax LLC’s commitment to supporting affordable housing initiatives through effective advocacy. By navigating the complexities of government regulations and ensuring the proper application of valuation methodologies, Protax LLC plays a vital role in ensuring that the intended benefits of affordable housing programs reach the low-income residents they are designed to serve.