42-11133. Exemption for low income housing projects


A. Property that is used exclusively for rental housing and related facilities is
exempt from taxation if:


1. The property is not used or held for profit.


2. The property is owned and operated by, or is a wholly owned subsidiary of, a
charitable fund, foundation or corporation, including a limited partnership in which the
managing general partner is an eligible nonprofit corporation.


3. All of the following applies:


(a) The acquisition, rehabilitation, development or operation of the property, or
any combination of these factors, is financed with tax exempt mortgage revenue bonds or
general obligation bonds or is financed by local, state or federal loans or grants and
the rents of the occupants do not exceed the rents that are prescribed by deed
restrictions or by regulatory agreements pursuant to the financing or financial
assistance terms.


(b) The owner of the property is eligible for and receives tax credits for low
income residential housing established under section 42 of the internal revenue code.


(c) The property is used as an assisted living facility for low income elderly
residents.


(d) The facility cannot exceed two hundred residents.


B. To qualify under this section, the owner of the property must:


1. For any claim that is filed in any fiscal year, certify and ensure, subject to
paragraph 2 of this subsection, that there is an enforceable and verifiable agreement
with a public agency, a recorded deed restriction or any other legal document that
restricts the use of the property and requires that the rents do not exceed the terms
that are prescribed by the financing or financial assistance terms. In the case of a
limited partnership in which the managing general partner is an eligible nonprofit
corporation, the requirements under this paragraph must be included in an enforceable and
verifiable agreement with a public agency or in a recorded deed certified by the limited
partnership.


2. Certify that the monies that would have been necessary to pay the property taxes
are used to maintain the affordability of or otherwise reduce the rents of the units that
are occupied by eligible low income households.