The bill amends the Metropolitan Redevelopment Code to address housing shortages by expanding the definition of eligible redevelopment areas to include "housing shortage areas," characterized by a lack of affordable housing, rising costs, low vacancy rates, and inadequate multifamily housing supply. It introduces new definitions for "qualifying multifamily property" and "qualifying multifamily unit," ensuring developments meet specific affordability criteria. Additionally, the bill exempts qualifying multifamily properties in housing shortage areas from property taxation for up to twenty years, incentivizing affordable housing development. Local governments are empowered to designate these areas and undertake redevelopment projects that include constructing qualifying multifamily units, aiming to alleviate the housing crisis and address slum conditions.

Moreover, the bill clarifies the tax status of project properties acquired by local governments, specifying that property taxes and assessments will be calculated based on the valuation from the year prior to acquisition. It establishes tax exemptions for lessees and owners of substantial beneficial interests in project properties, with varying exemption periods based on the acquisition date. Properties acquired before January 1, 1986, are exempt for up to ten years, while those acquired after that date can be exempt for up to seven years. For qualifying multifamily properties acquired on or after May 20, 2026, tax exemptions can last between seven to twenty years, further promoting the development of affordable housing options.

Statutes affected:
introduced version: 3-60A-2, 3-60A-4, 3-60A-7, 3-60A-8, 3-60A-9, 3-60A-10, 3-60A-13.1, 3-60A-15, 7-36-3.1