Bill > S1141

This bill clarifies the tax treatment of qualifying low-income housing by modifying existing state law. Specifically, it updates the definition of "qualifying low-income housing" to include two categories: (1) low-income housing units as defined by federal tax code (specifically 26 USC § 42), which refers to housing projects with units reserved for low-income residents, and (2) housing units that meet the state's affordable housing definition and were already approved for special tax treatment as of December 31, 2024. The bill maintains the existing tax provision that allows such properties to be taxed at 8% of the previous year's gross scheduled rental income (or a lesser percentage as determined by individual municipalities). This change ensures that future low-income housing developments will need to meet federal guidelines, while protecting existing affordable housing projects from losing their current tax status. The bill will take effect immediately upon passage.

Housing and Urban Affairs

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