AB 62 — Revises provisions governing property tax exemptions for low-income housing. (BDR 32-362)

A.B.Assembly Bill No.

6262–Committee Aon SSEMBLYRevenue BCHAPTER.......... ILLN O.

62–COMMITTEE ON R EVENUE (ON B EHALF OF THE A DVISORY COMMITTEE ON H OUSING ) PREFILED N OVEMBER 16, 2022 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions governing property tax exemptions for low-income housing.

(BDR 32-362) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) qualifies as a low-income unit that is part of a qualified low-income housing project that is financed in whole or in part by the federal Low-Income Housing Tax Credit or money from the Account for Affordable Housing;

or (2) is financed in part with money from the federal Housing Trust Fund and complies with the affordability requirements for unitsproperty financedtaxes throughreal theproperty Housingand Trusttangible Fund.personal property used exclusively for housing and related facilities for elderly persons or persons with disabilities if the property:

Existing(1) lawwas alsofinanced exemptsby froma propertyloan taxesunder realthe propertyfederal andHousing tangibleAct personalof property1959, usedas exclusivelyamended; for housing and related facilities for elderly persons or persons with disabilities if the property:

(1)and was(2) financedis byowned aor loanoperated underby thea federalnonprofit Housingcorporation. Act of 1959, as 1701q;

NRS(12 361.086)U.S.C. Section 2 of this bill provides that the exemption for real - *AB62* – 2 – property and tangible personal property used exclusively for housing and related facilities for elderly persons or persons with disabilities applies only to the portion of property which is used exclusively for housing and related facilities for very low-income elderly persons or very low-income persons with disabilities, as the exemption to include the portion of property that was wholly or partiallyds financed by a capital advance issued under the portion of the federal Cranston- Gonzalez National Affordable Housing Act, which authorizes capital advances for supportive housing for very low-income persons with disabilities.

§ 1701q;

NRS 361.086) Section 2 of this bill provides that the exemption for real property and tangible personal property used exclusively for housing and related facilities for elderly persons or persons with disabilities applies only to the portion of property which is used exclusively for housing and related facilities for very low-income elderly persons or very low-income persons with disabilities, as the exemption to include the portion of property that was wholly or partiallyds financed by a capital advance issued under the portion of the federal Cranston- Gonzalez National Affordable Housing Act, which authorizes capital advances for supportive housing for very low-income persons with disabilities.

The Nevada Constitution prohibits the Legislature from enacting an exemption from property taxes unless the Legislature makes certain findings regarding the benefits and effects of the exemption.

10, § 6) Section 3 of this billproperty setstaxes forthexpanded suchby findingsthis ofbill.Legislature the Legislature with respect to the exemptions from propertySection taxes4 of this bill provides that the expanded byexemptions thisset bill.forth in sections 1 and 2 apply prospectively only to housing and related facilities approved on or after July 1, 2023, to receive financing under a program described in section or 2.

Section- 482nd ofSession this(2023) bill– provides that the expanded exemptions set forth in sections 1 and 2 apply– prospectivelyEXPLANATION only– toMatter housing and related facilities approved 1 or 2.fter July 1, 2023, to receive financing under a program described in sectionbolded THEitalics PEOPLEis OFnew; THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

or (3) Money from the Account for Affordable Housing createdcre(b) byMeets NRSthe 319.500;affordability requirements pursuant to 24 C.F.R.

or (b) Meets the affordability requirements pursuant to 24 C.F.R.

The portion of a qualified low-income housing project that is entitled to the property tax exemption pursuant to paragraph (a) of subsection 1 must be determined by dividing the total assessed value of the housing project and the land upon which it is situated into the - *AB62* – 3 – assessed value of the low-income units and related facilities that are occupied by or used exclusively for persons with low incomes.

§ 4568 and that meet the affordability requirements pursuant to 24 C.F.R.

After an original application is filed, the county assessor of the county in which the housing project is located may mail a form for - 82nd Session (2023) – 3 – the renewal of the exemption to the owner of the housing project each year following a year in which the exemption was allowed for that project.

A renewal form returned to a county assessor must indicate the total number of units in the housing project and the number of units used for housing and related facilities for persons with low incomes.

andand[2.] [2.] (b) The property is owned or operated:

or - *AB62* – 4 – [(b)] (2) By a nonprofit corporation organized under the laws of another state and qualified to do business as a nonprofit corporation under the laws of the State of Nevada.

- 82nd Session (2023) – 4 – (a) “Elderly person” has the meaning ascribed to it in 12 U.S.C.

(b) “Person with disabilities” has the meaning ascribed to it in 42 U.S.C.

(c) “Very low-income” has the meaning ascribed to the term “very low-income families” in 42 U.S.C.

§ 1437a.1437a.d to the term Sec.

Sec.

H~~~~~ 23 - *AB62*82nd Session (2023)