Valuation of Affordable Housing Properties PL 2005 CHAPTER 170 (L.D. 1796)

Resolve, Concerning the Assessment of Property Subject to Affordable Housing Limitations and Benefits

 Sec. 1. Review. Resolved:That the Department of Administrative and Financial Services, Bureau of Revenue Services, referred to in this resolve as "the bureau," shall review the factors that should be considered by municipal assessors when determining the just value of property acquired, rehabilitated or constructed pursuant to federal laws related to affordable housing for low-income persons. The factors to be reviewed must include, but are not limited to, contracts and agreements, enforceable restrictions on the use of such property, financial elements including sales of such projects, government subsidies, tax credits, permits and licenses and any other factors considered relevant by the bureau; and be it further

Sec. 2. Informational program and materials. Resolved:That the bureau shall prepare an informational program and materials for municipal assessors that describe the factors that should be considered by municipal assessors when determining the just value of property acquired, rehabilitated or constructed pursuant to federal laws related to affordable housing for low-income persons. The informational program must be presented as part of the bureau's annual Property Tax School; and be it further

Sec. 3. Report. Resolved:That the bureau shall present a report to the joint standing committee of the Legislature having jurisdiction over taxation matters by January 10, 2007 describing the results of its review conducted pursuant to section 1. The report must include a description of how other states treat valuation issues for affordable housing projects both with and without federal tax credits and the impact of those credits on valuation. The report must describe practices used in Maine to assess affordable housing projects and identify any inconsistencies. The report must evaluate the application of the Constitution of Maine to assessment practices for affordable housing projects. The report must include any recommendations for statutory changes the bureau considers necessary. The bureau may submit legislation to implement its recommendations. After receipt and review of the report the joint standing committee may report out to the First Regular Session of the 123rd Legislature legislation to implement the recommendations related to the report; and be it further

Sec. 4. Advisory group. Resolved:That the bureau shall consult with the Maine State Housing Authority; representatives of affordable housing project developers, financers and owners; organizations representing municipal officials, including municipal assessors; and other experts in the field of appraisal and affordable housing project financing when preparing the informational program and materials and the report required by this resolve.