Assembly Bill 1113 proposes modifications to the property tax exemption for nonprofit organizations that sell property to low-income households. The bill repeals the requirement that prospective buyers must participate in the rehabilitation or construction of the property to qualify for the exemption. Instead, it allows for property tax exemption if the nonprofit offers no-interest loans to lower-income households or, if interest is charged, limits the sale to individuals with incomes below 120% of the area median income as defined by the U.S. Department of Housing and Urban Development. Additionally, the bill clarifies that properties held for redevelopment are eligible for the exemption and specifies that the nonprofit organization must be a 501(c)(3) entity under the Internal Revenue Code.

The bill amends existing statutes to reflect these changes, including the introduction of terms such as "lower income households" in place of "low-income persons." It also emphasizes that the nonprofit organization must hold the property for rehabilitation, redevelopment, or construction for sale to eligible households. The initial applicability of the act is set for property tax assessments as of January 1, 2026.

Statutes affected:
Bill Text: 70.11(4g)(intro.), 70.11, 70.11(4g)(a), 70.11(4g)(b), 70.11(4g)(c)