[§201H-36]  Exemption from general excise
taxes.  (a)  In accordance with section 237-29, the corporation may approve
and certify for exemption from general excise taxes any qualified person or
firm involved with a newly constructed, or moderately or substantially
rehabilitated project:



(1)  Developed under this part;



(2)  Developed under a government assistance program
approved by the corporation, including but not limited to the United States
Department of Agriculture 502 program and Federal Housing Administration 235
program;



(3)  Developed under the sponsorship of a private
nonprofit organization providing home rehabilitation or new homes for qualified
families in need of decent, low-cost housing; or



(4)  Developed by a qualified person or firm to provide
affordable rental housing where at least fifty per cent of the available units
are for households with incomes at or below eighty per cent of the area median
family income as determined by the United States Department of Housing and
Urban Development, of which at least twenty per cent of the available units are
for households with incomes at or below sixty per cent of the area median
family income as determined by the United States Department of Housing and
Urban Development.



(b)  All claims for exemption under this
section shall be filed with and certified by the corporation and forwarded to
the department of taxation.  Any claim for exemption that is filed and
approved, shall not be considered a subsidy for the purpose of this part.



(c)  For the purposes of this section:



"Moderate rehabilitation" means
rehabilitation to upgrade a dwelling unit to a decent, safe, and sanitary
condition, or to repair or replace major building systems or components in
danger of failure.



"Substantial rehabilitation":



(1)  Means the improvement of a property to a decent,
safe, and sanitary condition that requires more than routine or minor repairs
or improvements.  It may include but is not limited to the gutting and
extensive reconstruction of a dwelling unit, or cosmetic improvements coupled
with the curing of a substantial accumulation of deferred maintenance; and



(2)  Includes renovation, alteration, or remodeling to
convert or adapt structurally sound property to the design and condition
required for a specific use, such as conversion of a hotel to housing for
elders.



(d)  The corporation may establish, revise,
charge, and collect a reasonable service fee, as necessary, in connection with
its approvals and certifications under this section.  The fees shall be
deposited into the dwelling unit revolving fund. [L 2006, c 180, pt of §3]