Low Income Housing Articles:
City of Dallas is being scrutinized for their lack of inspecting developments that are HUD funded in some aspect, and requires a 51% affordable housing allocation. The developers for the project at 1600 Pacific have clearly overlooked that rule, and have essentially no tenants that meet those criteria. Major cities are allocated millions of dollars a year by HUD in forms of CDBG’s, and in the case of Dallas, $35 million was granted to be dispersed through multiple programs just last year. The responsibility of occupancy verifications falls in the hand of the City, and they are seeing a great deal of outrage from the general public along with HUD.
Taxation Article:
Democrats in Congress are currently trying to push legislations that would increase the capital gains tax from 15% to 25%-45% over a the next few years, inherently making real estate a level headed investment when paired next to any other common investment vehicle. Over the past however many years, real estate has been seen and used as a favorable asset due to limited taxation. Theoretically, if this legislation is passed in any form, investment dollars will shift from real estate to other more liquid investment vehicles. The negative stigma attached to real estate securitization and investment managers behind the current downfall has worked as a catalyst for those lobbying for higher taxation on the “carried interest.”
Commercial Rent Tax in California…?
City of San Francisco is proposing to implement a “commercial rent tax” on commercial tenants, apart from the property tax that is already levied on the property owners. The idea is fascinating to anyone that is pro-taxation and/or a government in a deficit like San Francisco, but the unfathomable affect on small business is going to be interesting to witness. It is counterintuitive to drive any sort of business out of your city due to a new form of taxation, essentially driving growth, sales tax revenue, and occupancy revenues down for yourself.
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