SB3895 Summary

• Requires chief county assessment officers to implement special assessment programs reducing assessed value of newly constructed or substantially rehabilitated multifamily rental properties with 7+ units for 10 taxable years after completion.

• Counties with fewer than 3,000,000 inhabitants may opt out of the programs by county board ordinance; counties with 3,000,000+ inhabitants must participate.

• Properties qualify by committing either 15% of units at affordable rents for 10 years, or 20% of units at affordable rents for 30 years in low affordability communities, with household incomes at or below 60% of area median income.

• Assessment reductions range from 25-35% under the 10-year program and use graduated reduction rates (100% first 3 years, declining to 20% in years 13-30) under the 30-year program.

• Applicants must submit documentation including building permits, proof of code compliance, rent schedules, tenant income verification, and for certain developments, a project labor agreement with local building trades council; deadline to apply is December 31, 2027.