In a new records request, WRAL News has learned the companies benefitting from an apparent loophole in state law on affordable housing property tax exemptions.

The list highlights 65 properties that qualified in 2025 for the property tax exemption through a State Supreme Court ruling. The ruling allows for a business to partner with a nonprofit.

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The ownership group FBRT Six Forks Owner LLC has two properties on the list that qualified in 2025 at 6200 Shanda Drive & 400 Woods of North Bend Drive. The two properties paid $812,506.28 in property taxes in 2024. Last year, that dropped to $9,440.95 after qualifying for the affordable housing property tax exemption for a difference of $803,065.33.

The ownership group listed as 3100 Hidden Pond Drive paid $283,975.29 in 2025 after qualifying for the same exemption. The year prior, they paid $915,815.00, which is a difference of $631,839.71 year over year.

These properties had ownership changes between the two billing cycles, which could indicate why they filed for this nonprofit exemption for the first time.

However, KV Regatta LLC saved $742,231.82 between 2024 and 2025 according to property tax records. It paid $7,480 in 2025 after paying $750,071.82 in 2024.

It goes towards a larger picture of what Wake County is losing out on in property tax values because of this loophole. New applications for the exemption dropped $745,785,853 off the tax rolls.

Raleigh Mayor Janet Cowell has a major concern about how this could impact the city and county’s tax revenue if the loophole remains open.

“You can see a real train coming down the railroad at you,” Cowell said. “We’ll either have to raise taxes on homeowners to make up for that or not hire those police or not build those fire stations and figure out where we cut.”

WRAL News attempted to reach the property ownership groups named in this article to answer questions about:

  • Why these properties filed for the exemption in 2025 but not 2024?
    • What changed to make these units qualify for affordable housing?

       However, WRAL News did not hear back from the property ownership groups.