Bill Text: AZ SB1196 | 2021 | Fifty-fifth Legislature 1st Regular | Introduced
Bill Title: Affordable housing; property valuation
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2021-01-20 - Senate read second time [SB1196 Detail]
Download: Arizona-2021-SB1196-Introduced.html
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REFERENCE TITLE: affordable housing; property valuation |
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State of Arizona Senate Fifty-fifth Legislature First Regular Session 2021
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SB 1196 |
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Introduced by Senators Mendez: Quezada; Representatives Hernandez M, Salman
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AN ACT
Amending title 42, chapter 13, Arizona Revised Statutes, by adding article 12; relating to property tax valuations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 13, Arizona Revised Statutes, is amended by adding article 12, to read:
ARTICLE 12. AFFORDABLE HOUSING
42-13551. Definitions
In this article, unless the context otherwise requires:
1. "Affordable housing" means owner-occupied residential property that is classified as class three pursuant to section 42-12003 and that is subject to a recorded deed restriction that restricts the use of the property and limits the price at which the property can be resold.
2. "Community land trust developer" means a nonprofit housing development entity that is a tax-exempt organization under section 501(c)(3) of the internal revenue code and that transfers community land trust property to a qualifying owner.
3. "Community land trust property" means improvements to real property to which both of the following apply:
(a) A fee or leasehold interest in the improvements is transferred subject to resale restrictions contained in a long-term ground lease of at least ninety-nine years.
(b) The community land trust developer retains an interest in the property pursuant to the deed of conveyance or the long-term ground lease.
4. "Ground lease" means a lease between the community land trust developer of a dwelling site, as landlord, and the owner or lessee of a permanent residence constructed on the dwelling site, as tenant.
5. "Qualifying owner" means a resident of this state who occupies, as owner, community land trust property as a permanent residence and who is part of a household for which the annual income at the time of transfer and adjusted for family size is not more than one hundred twenty percent of the local area median family income according to the most recent data published by the United States department of housing and urban development, or its successor agency.
6. "Resale restrictions" means binding deed restrictions that affect the price at which a qualifying owner's interest in community land trust property can be transferred for value to a subsequent qualifying owner or to the community land trust developer.
42-13552. Determining valuation of affordable housing
A. The initial appraised value of community land trust property in the year the property first qualifies for classification as affordable housing under this article is the initial investment basis. In subsequent valuations by the assessor, the value of the community land trust property may not exceed the sum of the market value of the community land trust property and the initial investment basis.
B. The department shall prescribe uniform rules, procedures and formulas for determining and fixing valuation under this section.
