HF1808 Summary

• Modifies community land trust property classifications beginning assessment year 2024, allowing owner-occupied units to qualify for homestead treatment as class 1a unless meeting alternative criteria for class 4d(2)

• Splits low-income rental property (class 4d) into two categories: class 4d(1) with 0.25 percent classification rate and class 4d(2) with 0.75 percent classification rate, effective assessment year 2024

• Requires new low-income rental properties to receive approval by city or town governing body resolution before applying to Housing Finance Agency, except in jurisdictions where class 4d(1) property represents less than 2 percent of total net tax capacity

• Appropriates transition aid to local units for 2025 and 2026 to offset revenue loss from class 4d(1) rate reduction, calculated based on net tax capacity changes and prior year tax rates

• Requires counties to survey ten largest class 4d(1) properties by November 1, 2025, and report to commissioner of revenue and legislature by March 15, 2026, on how owners used property tax savings