Builders could get it their way, for a time, in new Des Moines tax abatement program
KENT DARR Dec 4, 2015 | 5:42 pm
2 min read time
370 wordsAll Latest News, Government Policy and Law, Real Estate and DevelopmentDevelopers of large apartment complexes might catch a break from a recent change to the city of Des Moines tax abatement program that eliminated property tax rebates for their projects after Dec. 31.
On Monday, the Des Moines City Council will consider whether to give developers of multifamily projects more time to file building permits or apply for low-income housing tax credits through the Iowa Finance Authority. If those applications are filed by Dec. 31, developers would receive a tax abatement of 100 percent of the value of improvements to the property for five years.
The projects must be completed by Dec. 31, 2017 to qualify for the abatement.
That language was in recommendations from city staff that was presented for a council vote in October. The council eliminated the language. Councilwoman Christine Hensley has led an effort to insert that language back into a tax abatement program that takes effect Jan. 1.
Under changes to the tax abatement program, rebates on most multifamily projects constructed outside of the downtown core and along certain transportation corridors were eliminated. The amendment would apply to those projects.
The exception was for certain types of townhouses that contained no more than eight units.
City Manager Scott Sanders said that when changes to the tax abatement program were approved in October, it was not clear how many pending projects would be affected.
The abatements often are used to trigger state tax credits.
“I would be surprised if the change affects more than five projects,” Sanders said.
A better handle on the exact number of developers who will seek the abatements will be known in the next two to three weeks as applications for building permits and tax credits are submitted to the city and the state.
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FROM THE RECORD ARCHIVES:
Des Moines council overhauls tax abatement rules
Oct. 27, 2015 – The Des Moines City Council has approved a five-year extension of the city’s tax abatement program with significant changes that promote renovation of apartments and homes across the city. Read more
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