AB 609

This bill allows a municipality to establish a local housing investment fund

program. Under such a program, a municipality may designate qualifying parcels

as housing investment fund properties and collect tax revenues on any valuation

increases on these properties. These revenues may be used only for certain purposes

related to increasing the supply of housing available for persons with moderate

income, including providing financing for the provision of new workforce housing

units, funding infrastructure costs related to the provision of workforce housing, and

funding improvements to workforce housing units owned by the municipality or the

county in which the municipality is located.

Parcels that may be designated under the program are 1) parcels containing a

vacant building that will be converted into dwelling units, 2) parcels that have been

acquired by the municipality or the county in which the municipality is located

through foreclosure, that contain existing dwelling units, and that will be sold to and

improved by another person, 3) parcels consisting of land on which new dwelling

units will be constructed, and 4) parcels on which additional dwelling units will be

developed. When a property is designated, the municipality must determine the

value of the taxable property located on the parcel. Then, for each year commencing

after the completion of improvements on the designated property, the municipality

must determine the valuation increase for the designated property by subtracting

the base value from the equalized value of the taxable property located in that parcel

for that year. If this amount is positive for a year, the portion of taxes collected on

this valuation increase are paid to the designating municipality for deposit into the

housing investment fund for use for purposes related to increasing the supply of

housing available for persons with moderate income. Under the bill, a designating

municipality may collect taxes on valuation increases for a particular property for

two years, if the municipality is a first or second class city, or for five years, if the

municipality is a third or fourth class city, a village, or a town.

Because this bill may increase or decrease, directly or indirectly, the cost of the

development, construction, financing, purchasing, sale, ownership, or availability of

housing in this state, the Department of Administration, as required by law, will

prepare a report to be printed as an appendix to this bill.