Senate Bill No. 376 Summary

• Establishes property tax exemption for affordable housing that does not otherwise qualify under existing exemptions, effective July 1, 2016.

• Requires at least 75% of residential units occupied by residents at or below 80% of area median income, with either 20% at very low income (50% of median) or 40% at 60% of median income.

• Limits market-rate units to no more than 25% of total units and requires property to be actually occupied by low-income residents with reasonable transition periods for new construction or rehabilitation.

• For rental housing, exemption requires adoption of rental policy complying with government restrictions or limiting tenant rent to ensure affordability; for homeownership programs, requires mortgage policy making costs affordable to low and very low income residents.

• Requires property owners to file exemption applications with county assessor including IRS determination letter and rent roll documentation showing compliance with affordability requirements.