D.C. Council approves emergency tax relief for OFFICE-to-ANYTHING conversions!!!

[Anonymous]

"A new program will provide tax breaks to projects that convert offices to “anything” in the city’s business corridor."

https://www.smartcitiesdive.com/news/tax-break-programs-help-spur-downtown-dc-office-to-residential-conversions/741458/

It sounds like a hail Mary!

[Anonymous]

Anything?

How many mj dispensaries can 1 city support?

[Anonymous]

The population has not significantly increased and now is dispersed among more neighborhoods, for example Wharf was not residential in 90s.

A lot of currently residential bldg have significant %s of minimally or non-paying voucher tenants. Feds are not going to increase program and DC won’t have tax base to support more vouchers so that group won’t continue to backfill. Will inflated rents finally drop?

Crime has become more dispersed than in 90s, if taxes of varying types increase a lot, city will become even less of a draw it seems.

[Anonymous]

Federal funds for housing have not been changed yet but don’t seem likely to expand. But for Section 8 in Ward 3 there would be vacancies or prices would have dropped.

Lowered rents would benefit everyone, paying renters, those who transfer out of program and have more affordable choices not artificially inflated and taxpayers since vouchers are pegged to market rents. Time to let the bubble burst?

https://www.dchousing.org/wordpress/white-house-omb-federal-funds-freeze/

[Anonymous]

How about converting an office to an office? Does that qualify for tax relief?

[Anonymous]

I pass by the Elle at 20th & L every day -- it was an office to apartment conversion. When I was looking to move, I thought about that building. But wowza -- it was like $4000/month for a one-bedroom. I rented a comparable unit a couple blocks away for $2500. I can't say I understand the strategy of pricing like that, and tons of units in that building are vacant.

[Anonymous]

Anonymous wrote:The population has not significantly increased and now is dispersed among more neighborhoods, for example Wharf was not residential in 90s.

A lot of currently residential bldg have significant %s of minimally or non-paying voucher tenants. Feds are not going to increase program and DC won’t have tax base to support more vouchers so that group won’t continue to backfill. Will inflated rents finally drop?

Crime has become more dispersed than in 90s, if taxes of varying types increase a lot, city will become even less of a draw it seems.

Depends where. In areas where rents are already a lot lower than cost of ownership it's not likely.

[Anonymous]

Anonymous wrote:How about converting an office to an office? Does that qualify for tax relief?

It likely would, if it's "anything". the question is how to make money redeveloping offices into offices if there are no companies needing office space

[Anonymous]

Anonymous wrote:Federal funds for housing have not been changed yet but don’t seem likely to expand. But for Section 8 in Ward 3 there would be vacancies or prices would have dropped.

Lowered rents would benefit everyone, paying renters, those who transfer out of program and have more affordable choices not artificially inflated and taxpayers since vouchers are pegged to market rents. Time to let the bubble burst?

https://www.dchousing.org/wordpress/white-house-omb-federal-funds-freeze/

Which neighborhoods are these that bubbled because of voucher holders?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Federal funds for housing have not been changed yet but don’t seem likely to expand. But for Section 8 in Ward 3 there would be vacancies or prices would have dropped.

Lowered rents would benefit everyone, paying renters, those who transfer out of program and have more affordable choices not artificially inflated and taxpayers since vouchers are pegged to market rents. Time to let the bubble burst?

https://www.dchousing.org/wordpress/white-house-omb-federal-funds-freeze/

Which neighborhoods are these that bubbled because of voucher holders?

Google any of the many articles on how DC pays well over market rate for vouchers in Ward 3.

[Anonymous]

It would probably be more economical to tear (in many situations) and start over. Do they provide rebates for a complete tear down and rebuild or just a conversion?

[Anonymous]

This new "favor" or tax exemption for developers seems related to the U.S. Government's plan to sell hundreds of federal office buildings in Washington, D.C.

"Real-estate developer Don Peebles and his partners in the firm Donahue Douglas have launched a fund that focuses on office conversions. Washington, D.C., is one of the main target markets. This is just the beginning, Peebles said."

https://www.wsj.com/real-estate/commercial/u-s-government-hits-pause-on-massive-commercial-real-estate-sale-c2be3d4d?mod=real-estate_lead_pos1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Federal funds for housing have not been changed yet but don’t seem likely to expand. But for Section 8 in Ward 3 there would be vacancies or prices would have dropped.

Lowered rents would benefit everyone, paying renters, those who transfer out of program and have more affordable choices not artificially inflated and taxpayers since vouchers are pegged to market rents. Time to let the bubble burst?

https://www.dchousing.org/wordpress/white-house-omb-federal-funds-freeze/

Which neighborhoods are these that bubbled because of voucher holders?

Google any of the many articles on how DC pays well over market rate for vouchers in Ward 3.

I see. I remember reading articles on large apartment buildings along Connecticut being inundated. I had a distant family member who moved out of there for that reason. So, rents will go down there? They may want to move back..

[Anonymous]

Anonymous wrote:This new "favor" or tax exemption for developers seems related to the U.S. Government's plan to sell hundreds of federal office buildings in Washington, D.C.

"Real-estate developer Don Peebles and his partners in the firm Donahue Douglas have launched a fund that focuses on office conversions. Washington, D.C., is one of the main target markets. This is just the beginning, Peebles said."

https://www.wsj.com/real-estate/commercial/u-s-government-hits-pause-on-massive-commercial-real-estate-sale-c2be3d4d?mod=real-estate_lead_pos1

Who will rent it after it's developed? The biggest questions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Federal funds for housing have not been changed yet but don’t seem likely to expand. But for Section 8 in Ward 3 there would be vacancies or prices would have dropped.

Lowered rents would benefit everyone, paying renters, those who transfer out of program and have more affordable choices not artificially inflated and taxpayers since vouchers are pegged to market rents. Time to let the bubble burst?

https://www.dchousing.org/wordpress/white-house-omb-federal-funds-freeze/

Which neighborhoods are these that bubbled because of voucher holders?

Google any of the many articles on how DC pays well over market rate for vouchers in Ward 3.

I see. I remember reading articles on large apartment buildings along Connecticut being inundated. I had a distant family member who moved out of there for that reason. So, rents will go down there? They may want to move back..

Wait and see. Not just on Connecticut but the density there and on Wisconsin did make the issues visible.