Bill > HB1598

This bill establishes a comprehensive framework for assessing property tax for community land trusts (CLTs), which are nonprofit organizations that create and maintain affordable housing. The bill defines several key terms, including "community land trust," "ground lease," and "qualified owner" (someone with household income at or below 80% of the area's median income). It specifies that CLT land's tax value will be based on the present value of long-term lease fees, and the tax value of CLT improvements (dwellings) will be determined either by the initial appraised value or a formula using a median income index. The bill includes detailed provisions about affordability restrictions, which ensure that CLT properties can only be sold to other qualified owners at prices that maintain long-term affordability. Specifically, the bill mandates that CLT properties have ground leases with 99-year terms, include resale price formulas that preserve affordability, and have purchase options for the land trust. The legislation is set to take effect on July 1, 2025, and will apply to assessment dates after December 31, 2025, providing a new approach to valuing and taxing community land trust properties that prioritizes maintaining affordable housing options.