Assessment Board approves new evaluation for affordable housing property in Wisconsin

The City of Waukesha Board of Review convened on July 11, 2025, to address property valuation concerns, focusing on the assessment of a low-income housing property. The meeting began with discussions surrounding the appropriate cap rate to apply in the valuation process, with board members emphasizing the importance of using actual income and expenses reported by the property owner.

A key point of contention was the cap rate, with members debating between an 8.06% rate supported by CoStar and a 7.5% rate suggested by the assessor. Board members expressed their preference for the 8.06% cap rate, citing its reliability and relevance to affordable housing rather than general market housing. The discussion highlighted the need for a nuanced approach to valuation, particularly for properties serving low-income residents.

After thorough deliberation, a motion was made to determine that the assessor's valuation was incorrect. The board concluded that the property owner's evidence warranted a reassessment. The final valuation was set at $6,478,285, with land valued at $755,000 and improvements at $5,723,300, rounded to the nearest hundred as required.

The motion passed unanimously, with all board members voting in favor. The meeting concluded with the assurance that the property owner would receive the updated assessment documentation. This decision reflects the board's commitment to fair and accurate property evaluations, particularly in the context of affordable housing.