Property Tax subsidy - valuation of property

[Jennifer M.]

I am looking into the purchase of a multifamily property that is in a city housing incentive program that reimburses the owner a large portion of the property taxes for the next 10 years.  Properties sell at a cap rate of around 7% in this area, and the property is priced accordingly.  Of course, once the 10 years is up and the property tax subsidy ends, the net income for the property will be lower, and the property value lower accordingly (assuming all else equal).  Does anyone have any experience with properties in a similar tax incentive program, and were they priced at a discount relative to the typical cap rate to account for the fact that the subsidy would end at some point?  I want to make sure I am thinking about this correctly before I go into negotiations on this property.  Thanks in advance.