Relative to residential property subject to housing covenants under the low income housing tax credit program.
Impact
If enacted, SB173 will directly affect the appraisal processes for residential rental properties in New Hampshire that fall under specific housing covenants. The valuation approach outlined in the bill simplifies the assessment for property owners by allowing them to request an assessment based on actual income, rather than relying on potentially outdated valuation metrics. This change is expected to ease financial pressures on property owners while ensuring that a consistent and fair method of property taxation is applied across similar properties within the state.
Summary
Senate Bill 173 aims to modify how residential properties subject to housing covenants under the low-income housing tax credit program are assessed for property tax purposes. Specifically, the bill stipulates that the assessment will be based on an amount equal to 10 percent of the actual rental income and any other related income of the property. This new framework is intended to provide a more standardized approach to property assessment for multi-family rental properties benefiting from federal low income housing programs.
Contention
The bill's provisions could spark debates regarding the adequacy of funding for local services that rely on property tax revenue. Critics may argue that the lowered assessments, based on rental income rather than market value, could diminish the tax revenue available to municipalities, potentially impacting public services. Supporters, however, may contend that the proposal aids in promoting affordable housing initiatives in the state, securing a balance between tax fairness and the necessity of housing developments designed for low-income tenants.