A bill that sets up uniform appraisal of low-income housing in Louisiana was approved 91-4 by the House and then sent to the Senate. Rep. Mark Abraham, R-Lake Charles, is sponsor of House Bill 610, which would prohibit the consideration of the value of low-income federal housing tax credits in determining the fair market value of some residential housing units.
The federal government gives the credits to banks and investors that provide funding to developers of low-income housing projects such as churches and parishes. Developers then agree to set a cap on the rents they charge.
“62 of the state’s 64 parishes make appraisals of rental property on the basis of cost, market value and income,” Abraham told the American Press. “But Orleans and St. Tammany parishes take the value of federal tax credits into consideration when they appraise property.”
A spokesman for New Orleans Mayor Mitch Landrieu told The Times-Picayune that Landrieu opposed Abraham’s bill. The city said it would lose out on at least $2.8 million in property taxes if the bill becomes law.