BILL NUMBER: S7865A
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to establishing
an optional local tax exemption for affordable multi-family housing
 
PURPOSE:
To establish region-specific affordable housing recommendations
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 proposes tax exemptions for newly-constructed or converted
rental multiple dwellings, with affordability criteria, region-specific
recommendations, and periodic updates by the Division of Homes and
Community Renewal
Section 2 establishes the effective date of the bill
***Amendments to this version of the bill include specific language
regarding conversion provisions falling under the scope of this bill
 
JUSTIFICATION:
In our current housing systems, Industrial Development Agencies (IDAs)
across the state typically evaluate proposals for housing tax exemptions
on a case-by-case basis. This system is inefficient and increases the
risk of municipalities entering into unfavorable agreements. Developers
seeking to build affordable housing also do not know what standards and
policy to aim for, which makes the process of building unpredictable and
difficult.
By setting standards up front through local laws, housing developers can
know what requirements for affordability are to be granted, and can plan
accordingly. Upfront standards ensure good deals for municipalities by
establishing clear criteria, helping communities achieve their afforda-
ble housing goals by using tax policy as a clear tool.
The recommendations will be updated every two years by the Department of
Homes and Community Renewal, ensuring that affordable housing policies
remain up-to-date and adapt to changing economic conditions,
construction costs, and housing market dynamics. This flexibility allows
the state to respond promptly to evolving challenges and opportunities
in housing. This aims to address the challenges posed by expensive and
affordable housing markets, establishing a more comprehensive strategy
than the current ad hoc system.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
Immediately