ND SB2338

Amends the property tax exemption for institutions of public charity to clarify that residential rental units leased based on federal low-income housing tax credits are not eligible for the exemption.

Creates a new property tax exemption for affordable rental residential property owned by qualified nonprofit entities, including land and administrative buildings, exempt for the property's period of affordability.

Requires the housing finance agency to certify that affordable housing properties comply with land use restriction agreements, have nonprofit or political subdivision control, and are subject to income and rent restrictions.

Establishes an in-lieu payment requirement of five percent of total annual rents collected minus utility costs, in place of ad valorem taxes for exempt affordable housing properties.

Effective for taxable years beginning after December 31, 2012, with exemption beginning the first taxable year after owners receive a building permit for new projects starting after that date.