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

(1)  Developed under this part;

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

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

(4)  Developed by a qualified person or firm to provideaffordable rental housing where at least fifty per cent of the available unitsare for households with incomes at or below eighty per cent of the area medianfamily income as determined by the United States Department of Housing andUrban Development, of which at least twenty per cent of the available units arefor households with incomes at or below sixty per cent of the area medianfamily income as determined by the United States Department of Housing andUrban Development.

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

(c)  For the purposes of this section:

"Moderate rehabilitation" meansrehabilitation to upgrade a dwelling unit to a decent, safe, and sanitarycondition, or to repair or replace major building systems or components indanger 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 repairsor improvements.  It may include but is not limited to the gutting andextensive reconstruction of a dwelling unit, or cosmetic improvements coupledwith the curing of a substantial accumulation of deferred maintenance; and

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

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