SB 1520 – Affordable Housing Property Tax Exemption

• Strengthens the standard for a taxing authority to opt out of the affordable housing property tax exemption by requiring that Shimberg Center housing reports show affordable unit surpluses for each of the previous 3 years (rather than just the most recent report) before an opt-out ordinance can be adopted.

• Allows owners of multifamily project properties that received final site plan approval within 1 year before the adoption of an opt-out ordinance or resolution to still apply for and receive the affordable housing ad valorem tax exemption.

• Preserves existing protections allowing multifamily properties already receiving the exemption before an opt-out ordinance to continue receiving it in subsequent consecutive years under the same or successive ownership.

• Opt-out ordinances or resolutions still require a two-thirds vote of the governing body, must be publicly advertised, and expire on the second January 1 after taking effect, with an option for renewal.

• Amendments first apply to the 2027 property tax roll, with an effective date of July 1, 2026.