HB 1797 would allow a city that acquires or builds affordable housing to receive a one-time remittance from the department of revenue that is the equivalent of 4.37 percent of the sales or use tax on the construction or purchase of such affordable housing. The bill would require the residential units for which the city's remittance application was approved to remain affordable housing for at least twenty-five years after the date of the application approval. Additionally the city would have to create an affordable housing and local infrastructure account to be used solely for the city's acquisition or construction of affordable housing or local infrastructure. The city would also have to deposit 0.85 percent of any local sales and use taxes collected by the city on sales or uses related to the acquisition or construction of affordable housing or local infrastructure by taxpayers within the city's taxing jurisdiction into the affordable housing and local infrastructure account. And, HB 1797 extends the legislative authority of any county or any city to impose an excise tax on each sale of real property in unincorporated areas of the county for the county tax and in the corporated limits of the city for the city tax to develop affordable housing including acquisition, building, rehabilitation, and maintenance and operation of housing for very low, low, and moderate-income persons and those with special needs.
Executive action taken in the House Committee on Community Development, Housing & Tribal Affairs on Feb 15th at 8:00 AM