House Bill No. 5500, as amended by House Amendment "A," allows municipalities and water pollution control authorities to abate or refund interest on delinquent property taxes and sewerage system use charges owed by certain common interest communities. Specifically, the bill permits municipalities to waive all or a portion of the interest on delinquent real property taxes for common interest communities with more than 500 units that are in receivership under a Superior Court order. Additionally, municipalities can refund interest that has already been paid by these communities. The same provisions apply to water pollution control authorities regarding delinquent sewerage system use charges.

The bill's implementation will result in potential revenue losses for municipalities starting in fiscal year 2027, as they may choose to abate delinquent property taxes. Furthermore, there will be costs associated with refunding interest payments already made by qualifying common interest communities. The bill is effective upon passage and aims to provide financial relief to large common interest communities facing financial difficulties.