Georgia affordable housing developers revived an effort to amend the state constitution to shield their properties from steep property tax hikes.
State Rep. Shaw Blackmon, chairman of the House Ways & Means Committee, and State Rep. Rob Leverett officially introduced a constitutional amendment on Monday. It proposes treating low-income housing tax credit properties as a separate property class for ad valorem tax purposes.
The Georgia debate resurfaces as housing affordability soars to the top of November’s mid-term ballots nationwide. Illinois, Indiana, Florida, Pennsylvania, California and other states are trying to pass housing reforms or tweak recent laws to lower regulatory barriers. Parallel to the state efforts, dozens of municipalities also have engaged in similar endeavors to break down barriers to more affordable housing access.
Advocates say the amendment move is urgent after years of steep property tax increases across Georgia. In some counties, valuations have exceeded property revenue by 100% to 200%, according to the Georgia Affordable Housing Coalition.
Low-income housing tax credit properties cannot increase rents to cover those costs. Developers argue the current system threatens project solvency and long-term affordability. Meanwhile, Georgia has a shortage of more than 200,000 affordable units, according to estimates.
“This isn’t just a housing issue—it’s an economic issue,” Ken Blankenship, president of the Georgia Affordable Housing Coalition, said in a statement. “When affordable housing is jeopardized by high property taxation, employers are forced to delay expansion or reduce operations because workers can’t afford to live nearby. Every community in Georgia ultimately feels the consequences.”
Proposed LIHTC cut alarms affordable housing advocates
Debate over the amendment runs in step with a push in the Georgia General Assembly to reduce the state’s low-income housing tax credit match with the federal LIHTC by 50% next year. Lawmakers would end the match entirely in 2031. State lawmakers are pushing for the LIHTC support cuts as a revenue offset to lower personal and corporate tax rates.
Housing groups warn that the proposed legislation’s initial 50% cut raises foreclosure risks. They say eliminating the state tax credit program would slow needed production.
Georgia created the tax credit program in 2001. According to housing advocates, state and federal credits helped finance or preserve more than 123,000 affordable homes over the 25-year-period.
Georgia is one of a few states whose LIHTC structure provides a full, dollar-for-dollar match with the federal credit. Similarly, Oklahoma, Indiana and Nebraska also have a dollar-for-dollar match, but with conditions.
“Georgia has one of the best tax credits in the country,” Matt Bedsole, CEO of Invest Chattanooga and a former affordable housing adviser to Atlanta Mayor Andre Dickens, told The Builder’s Daily.
The tax credit legislation is now being hashed out in the Georgia House after earlier Senate approval. A similar bill died two years ago after the House made changes and the Senate never voted on the revised measure. In that same legislative session, the sponsors of the latest constitutional amendment introduced an identical measure. However, its path ended once the committee passed the measure. It never made it to the House floor for a vote.
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