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IN HB1616
Bill
Status
1/22/2019
Primary Sponsor
Jim Pressel
Click for details
AI Summary
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Restores property tax exemption for land acquired by nonprofits to build or renovate single-family homes for charitable sale or gift to low-income individuals, removing the previous January 2, 2017 expiration date and extending it to January 1, 2028
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Creates "Program II" neighborhood assistance tax credit for contributions to qualified nonprofit developers building affordable housing for buyers at or below 120% of area median income, with homes deed-restricted as affordable for minimum 15 years
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Creates "Program III" neighborhood assistance tax credit for contributions to affordable housing organizations engaged in housing development, repair resources, blight elimination, rental assistance, homeownership assistance, and foreclosure prevention
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Sets annual cap of $1 million each for Program II and Program III tax credits, separate from the existing $2.5 million cap for traditional neighborhood assistance credits under Program I
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Limits any single affordable housing organization to $200,000 in Program III tax credits per year, and caps credits for federal Section 42 housing at 30% of total annual allocation
Legislative Description
Affordable housing tax benefits. Restores the property tax exemption for certain real property that is acquired for the purpose of erecting, renovating, or improving a single family residential structure that is to be given away or sold: (1) in a charitable manner; (2) by a nonprofit organization; and (3) to low income individuals who will use the land as a family residence. Expands the neighborhood assistance credit to provide the credit for contributions to certain nonprofit entities that develop affordable residential housing for sale to certain low income buyers (program II). Expands the neighborhood assistance credit to provide the credit for contributions to affordable housing organizations (program III). Provides that the aggregate limit of tax credits that may be approved under program II each state fiscal year is $1 million. Provides that the aggregate limit of neighborhood assistance tax credits that may be approved under program III each state fiscal year is $1 million. Specifies conditions for allocations of neighborhood assistance credits to affordable housing organizations under program III.
Last Action
Representatives Heine and Klinker added as coauthors
1/31/2019