Legislative study pitch would let nonprofits partner with for‑profits to use property‑tax exemption for workforce housing

Representative Rick Cheatham introduced RS 32584 on Thursday as a proposal intended to put an option for the interim housing committee to consider next year: modify existing property‑tax exemptions for affordable and workforce housing so nonprofit sponsors can partner with for‑profit developers to increase construction scale.

"In 2002, the Idaho legislature adopted a property tax exemption for affordable and workforce housing projects developed by nonprofit entities," Cheatham said, adding restrictions in current code have kept the incentive “virtually unused.” He said the RS would allow nonprofits to team with profit organizations and use underutilized incentives to help make projects financially feasible.

Austin Vanderhaeyn, a representative of Dominion, a national developer and owner of income‑ and rent‑restricted housing, told the committee the proposal would not create a new exemption but would amend existing law to permit nonprofit–for‑profit partnerships. "Nonprofits just don't have the capital... we're staring at a nearly 25,000 unit deficit in Idaho," Vanderhaeyn said, adding Dominion’s typical projects exceed 200 units and that larger scale development can attract federal housing equity and private capital.

Vanderhaeyn offered several figures during his presentation: he said a 200‑unit workforce housing development in Ada County could generate about $30,000,000 in federal low‑income housing tax credit equity, create roughly 377 full‑time equivalent construction jobs with an average salary near $50,000, and purchase about $28,200,000 in construction materials in Idaho. He also said a 200‑unit development could produce about $2,500,000 in state and local tax revenue and save families an average of about $500 a month in rent.

Representative Birch raised operational questions for future consideration, including whether housing could be tied to a particular employer, long‑term affordability protections, and parking and traffic impacts in host communities. Vanderhaeyn said Dominion retains ownership and management of its communities and that the company aims to keep units affordable at about 60% of area median income for the life of ownership.

Representative Shepherd questioned the fiscal note and whether the exemption would reduce property taxes immediately. Jason Kreisenbeck, a contract lobbyist for Dominion, told the committee the fiscal note assumes no immediate fiscal impact because proposed eligibility would apply only to projects that receive financing after the law’s effective date; existing projects would not retroactively qualify.

After discussion the committee voted to introduce RS 32584 for interim consideration. Cheatham and presenters emphasized the RS is intended to bring the option into the public sphere for the interim legislative committee to study rather than move directly to final legislation this session.