The bill amends Section 44-5-13.11 of the General Laws regarding the assessment and taxation of qualifying low-income housing. It establishes that residential properties issued an occupancy permit on or after January 1, 1995, and encumbered by a covenant for low-income housing, will be taxed at a rate of 8% of the previous year's gross scheduled rental income if at least 40% of the units are affordable to households at or below 80% of the statewide area median income, or if at least 30% of the units are affordable to households at or below 60% of the median income.

Additionally, the bill introduces a tax stabilization schedule for properties converted from non-residential to residential use, starting at 8% for the first fifteen years and gradually increasing to 12% by the thirtieth year.

The bill clarifies that the term "residential property" excludes any non-residential portions of mixed-use buildings, requiring property owners to provide evidence for appropriate taxation. It also allows properties approved for tax treatment under this section to maintain their established tax rates unless rejected by the property owner, and ensures that no municipality can tax qualifying properties at a higher rate than specified in the bill.

This act is intended to promote the creation of low-income housing and adaptive reuse of buildings, reflecting a state-wide concern for affordable housing. The bill will take effect upon passage.

Statutes affected:
963: 44-5-13.11