Property Tax Exemption for Low-Income Housing in Georgia: OCGA § 8-3-8

In Georgia, many housing developers and stakeholders may not be aware of the significant tax exemptions available for low-income housing projects. OCGA § 8-3-8 provides a key opportunity for those involved in affordable housing to benefit from a property tax exemption.  

Overview of the Exemption 

The Georgia Code (OCGA § 8-3-8) offers a property tax exemption for eligible housing units within projects specifically designed for low-income residents. This exemption is designed to support housing projects under a “Private Enterprise Agreement” with a local housing authority, providing essential tax relief for developments focused on affordable housing. 

Eligibility Criteria 

To qualify for this exemption, housing units must meet specific conditions:

1.  Low-Income Residency: The housing units must be occupied by individuals or families who meet the definition of “Persons of Low Income.” According to the code, this includes those who cannot afford safe, sanitary housing without financial assistance, as determined by the local housing authority.
2.  Enterprise Agreement: The housing project must operate under a Private Enterprise Agreement with a local housing authority. This agreement is a formal contract between the housing authority and a for-profit entity involved in the housing project's management, development, or ownership. The arrangement aims to facilitate the provision of affordable housing by integrating public and private resources. 

What is a Private Enterprise Agreement? 

Under the code, a Private Enterprise Agreement encompasses various types of involvement between a housing authority and a for-profit entity, such as: P

• Project Management: Overseeing day-to-day operations of the housing project. 
• Development and Credit Enhancement: Assisting with the development and financial backing for the project. 
• Ownership and Operation: The housing authority can collaborate directly or through a subsidiary to co-own or operate the housing project. 
• Funding Support: Providing funds to subsidize construction and operating costs, particularly to assist with units occupied by low-income residents. 

A combination of these roles may form a qualifying Private Enterprise Agreement, provided it aligns with the goals outlined in OCGA § 8-3-8. 

Application Deadlines 

To apply for the exemption:

• The Private Enterprise Agreement must be finalized by December 31 of the year preceding the tax year for which the exemption is sought. 
• The application for the tax exemption must be submitted by April 1 of the tax year. 

This exemption can be a significant financial benefit, reducing operating costs and supporting the sustainability of affordable housing projects across Georgia. Housing developers and local authorities can leverage this provision to enhance housing access for low-income residents while also taking advantage of the supportive tax environment outlined in OCGA § 8-3-8. 

If you think your project may qualify or have any questions, contact our team using the form below. Now is the time to act and benefit.