HB 5619 Summary

• Amends the State Housing Development Authority Act to grant tax exemptions for federally-aided or authority-aided housing projects owned by nonprofit housing corporations, consumer housing cooperatives, limited dividend housing corporations, and mobile home park corporations.

• Housing projects exempt from ad valorem property taxes must pay an annual service charge in lieu of taxes to the municipality, calculated as the greater of prior year taxes or 10% of annual shelter rents for new construction, or the lesser of those amounts for rehabilitation projects.

• Owners seeking exemption must file a certified affidavit with the local assessing officer before November 1 of the year preceding the tax year when exemption begins.

• Tax exemptions remain in effect for the duration of the mortgage or grant (maximum 50 years), unless the municipality establishes a different period by ordinance or opts out of the exemption for certain housing project classes.

• Payments in lieu of taxes are distributed by municipalities to taxing units in the same proportion as general property taxes, with school district portions directed to the state school aid fund for tax years after 1993.