SB1310 Summary

• Establishes the Individual Housing Accounts Savings Program administered by an 8-member board (including three state directors, governor-appointed representatives, and two non-voting legislative members) to allow employees to contribute to housing savings accounts through payroll deductions.

• Expands authorized uses of individual housing accounts to include economic hardship assistance, capital improvements for homeownership, cemetery and mortuary services, senior housing, rental deposits, and downpayment assistance on principal residences.

• Imposes a 10% penalty on distributions made less than 365 days from contribution date; creates confidentiality protections for account information and requires trustees to report account activity to the director of taxation.

• Allows taxpayers to establish individual housing accounts for dependent children with tax-deductible contributions; requires community development financial institutions and other qualified depositories to serve as account trustees.

• Appropriates funds from general revenues to the Individual Housing Accounts Savings Program Administrative Fund for fiscal years 2019-2020 and 2020-2021, with amounts to be determined; effective date January 1, 2050.