Bill > HB0753

This bill establishes a specific process for assessing and valuing multi-unit rental housing that receives government incentives for restricting rents to low-income renters. It mandates that such properties be valued using methods that consider actual income and expenses, align with professional appraisal standards, and adjust for the difference in rent between restricted and unrestricted units. Importantly, the bill excludes the value of low-income housing tax credits, which are federal or state benefits designed to encourage the development of affordable housing, from the property's valuation. It also outlines how capitalization rates, which are used in the valuation process and reflect the risk and return on investment, should be determined, ensuring they are higher for these restricted properties and published annually. Property owners are required to promptly notify tax assessors if their property becomes or ceases to be subject to these government restrictions, or if a foreclosure occurs, with penalties for failure to do so. "Government restriction on use" is defined broadly to include various federal, state, and local incentives like tax credits, loans, rent subsidies, and tax abatements, while "low-income" is defined as earning at or below 80% of the area median income. This new assessment method will apply to multi-unit rental housing (defined as properties with four or more units, excluding assisted living facilities and most duplexes/single-family homes) starting with the 2026 tax year, provided the local government adopts this section by ordinance or resolution.