Subsidized Housing
I am working on a 66-unit deal, trying to get all information possible. It is in Texas and I am in California, so some things are different there. On the tax papers at the appraisal office under land use: Subsidized housing. What does that mean to me? Does it affect taxes or does it mean that the owner is getting some government money for rents?
Can someone help with this, please?
Thanks
Subsidized housing means the owner is renting to tenants subsidized under HUD's section 8 program. This means that most of the rent is deposited into your bank account on the 1st of the month. Usually the tenant will pay a small amount of rent. It will not affect your taxes. But you may qualify for low cost government loans when rehab is needed.
HUD subsidy for housing is of two types: "project based subsidies" in which the subsidy is provided to a particular apartment unit and "tenant based subsidies" in which the subsidy is provided to a family which selects their own apartment unit from the private market.
HUD has created subsidized housing through a number of different programs over the years. Many of the HUD housing programs are no longer active in creating new housing units; but, the units these programs created in the past still provide subsidized housing for low income families.
If this property is in the "project based subsidy" category, then the property taxes may be based upon some special rate for this housing type.
Thank you for your posts. Does HUD also help with utilities? This property has a master meter - landlord pays all. Electricity alone eats up half the rent.
Trying to figure out how to make it work.
I am also an investor in the Texas market. I would be really careful with your analysis. Check Property Taxes they are much higher than in CA, Insurance expenses (not inexpensive either), & management companies( I am on my 3rd company in 2 years)