Longmont City Council will meet as The Longmont Housing Authority this week to discuss a potential partnership to provide property tax exemption for Atwood Commons.
Atwood Commons, owned by Brikwell Olive Grove Housing Solutions, hopes to construct 72 new mixed-income 1- and 2-bedroom apartments at 130 Third Avenue. Rent at 22 of the apartments is expected to be affordable for individuals and families who fall in the 70-80% AMI, or average median income. Another 13 apartments will be affordable to households at 20% AMI.
According to meeting documents, LHA adopted a Property Tax Exemption Partnership Policy for affordable housing developments that partnered with LHA in February. The partnership policy provides an incentive to developers to build more affordable housing and a 10% fee is used by LHA to further future affordable housing development.
State statute dictates that the amount of property taxes exempt is proportionate to the percentage of development that is affordable to low-income households. The statute could create a problem for Atwood Commons because the 70-80% AMI units may not qualify for the exemption.
On Tuesday night, the LHA board — which is also the Longmont City Council — will decide whether or not to enter into a Property Tax Exemption Partnership with Atwood Commons that would allow for a minimum of 69% tax exemption.
