HB 23-1184

House Bill 23-1184, which has been signed into law and will take effect on August 7, 2023, aims to help more low-income individuals and families by expanding property tax exemptions for nonprofit housing providers. The bill broadens the definition of "low-income" to include a wider range of income levels and allows properties under construction to qualify for these tax breaks until they are sold or transferred. Additionally, it ensures that community land trusts and nonprofit developers can also benefit from similar tax exemptions if their property is used for affordable homeownership projects. This bill will make housing more affordable for those who need it most by reducing the financial burden on organizations that provide low-income housing.

Official Summary

Section 2 of the act clarifies and expands the current property tax exemption for property acquired by nonprofit housing providers for low-income housing. Section 2 also clarifies that property may qualify for the property tax exemption, through construction on the property, until the property is sold or transferred. The act expands the definition of "low-income" applicants to include individuals or families who are at or below 100% of the area median income or, if the property is in a rural resort community, at or below 120% of the area median income, as well as individuals or families who are at or below 80% of the area median income and were already included in the definition. Section 1 of the act requires applicants for the exemption described in section 2 of the act to follow the same process and submit the same forms that are required for applicants for similar exemptions. Section 3 deems certain property held by community land trusts and nonprofit affordable homeownership developers to be used for a strictly charitable purpose and to consequently be exempt from property taxation in accordance with the state constitution. To qualify for the exemption, the property must be split into a separate taxable parcel from the improvements on the property and leased to the owner of the improvements as an affordable homeownership property. APPROVED by Governor May 25, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

Votes