1DS - Valuation of Subsidized Housing (581a)

Instructor: John Zukowski, IAO, SRA, MAI

This seminar is a comprehensive look at and analysis of Subsidized Housing and Real Property Tax Law 581a. Since 581a came into real property tax law, a few issues and court decisions have come down the pike. In the morning, attendees will jump into the different types of subsidized housing, as well as how and why subsidized housing is created and funded. Then, the class will investigate the Real Property Tax Law 581a, discuss the wording and intent of the law, and why it was created. Then the class will look at how 581a cases have progressed and the case laws that have changed the ways these cases are handled.

The afternoon will be mainly focused on valuation. The instructor will discuss and review a case study, analyze actual income statements, and discuss the income and the expenses in detail, including the reasonableness of expenses and where supporting documentation can be found. The class will discuss the risk level associated with these properties and turn that expected risk into a supportable capitalization rate. The instructor will then dive into the industry perspective on expenses, capital improvements, and reserves.

By the end of the day, attendees will be able to justify and support an opinion of value for their 581a cases. This seminar was created for the assessment community. Since almost every municipality has 581a properties, this seminar should be valuable for everyone. A basic understanding of the Income approach would be helpful, but it is not mandatory. Please bring a calculator.  

Continuing Education Hours / Re-Certification Credits

The Institute of Assessing Officers will award six (6) re-certification credits to all Institute members who attend this seminar. Eligible assessors and county directors who attend will receive education credit and reimbursement from ORPTS, pursuant to their rules.