This bill amends the eligibility requirements for tax exemptions related to charitable, nonprofit housing projects in New Hampshire. It introduces new legal language that specifies the criteria these facilities must meet to qualify for tax exemption. Key insertions include the requirement for facilities to have an open enrollment policy for elderly persons regardless of their ability to pay, accept forms of payment that do not cover service costs (such as Medicare and Medicaid), and provide a substantial portion of services for free or at reduced fees. Additionally, facilities must demonstrate a commitment to serving those who cannot afford usual fees and ensure that compensation for directors and employees is not primarily based on financial performance.

The bill also mandates that facilities adopt provisions in their governing documents to prevent the use of surplus funds for private gain and requires them to quantitatively demonstrate their role in alleviating government burdens. Other stipulations include the need for facilities with independent living components to reinvest in their upkeep. The effective date for these changes is set for April 1, 2027. Overall, the bill aims to ensure that tax-exempt charitable housing projects genuinely serve the community and adhere to specific operational standards.

Statutes affected:
Introduced: 72:23-k
HB1295 text: 72:23-k