Bill > H5236

This bill modifies existing tax regulations for certain residential properties participating in federal supportive housing programs by increasing the maximum taxable rate from 8% to 12% of the previous year's gross rental income, effective January 1, 2026. Specifically, the bill applies to properties under three federal housing programs: Section 202 Supportive Housing for the Elderly Program, Section 811 Supporting Housing for Persons with Disabilities Programs, and project-based Section 8 housing. The tax rate of 12% will only be applicable to properties that use an operating cost basis for federal reimbursement, and individual municipalities retain the discretion to impose a lower percentage. The bill aims to adjust the taxation framework for these specific low-income housing properties, potentially increasing local tax revenue while maintaining the properties' focus on providing affordable housing for vulnerable populations such as seniors and people with disabilities. The legislation will take effect immediately upon its passage.

Housing and Urban Affairs

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