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IN SB0225
Bill
AI Summary
SB 225 Summary
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Establishes property tax exemption for affordable rental housing owned by 501(c)(3) organizations or their single-member disregarded entities when 100% occupied by low-income residents (at or below 80% of area median income).
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Allows reasonable transition periods for properties requiring construction or rehabilitation to achieve the 100% low-income occupancy requirement, with one year considered reasonable for properties without substantial construction needs.
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Permits property owners to retain the right to evict tenants for non-payment of rent or misconduct without disqualifying the property from exemption.
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Requires exemption applications to include copies of the owner's IRS determination letter and a rent roll showing compliance with low-income occupancy requirements.
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Takes effect July 1, 2016.
Legislative Description
Property tax exemption for affordable housing. Establishes standards for affordable rental housing property to be exempt from property taxation when the property does not otherwise qualify for a property tax exemption. Specifies that the exemption applies to properties owned by a 501(c)(3) organization (or a disregarded entity of such an organization) that are 100% occupied by residents who qualify as low income.
Last Action
First reading: referred to Committee on Ways and Means
2/8/2016