An Act To Create Affordable Workforce and Senior Housing and Preserve Affordable Rural Housing
Sec. 1. 30-A MRSA §4722, sub-§1, ¶EE, as enacted by PL 2017, c. 234, §18, is amended to read:
Sec. 2. 30-A MRSA §4722, sub-§1, ¶FF, as enacted by PL 2017, c. 234, §18, is amended to read:
Sec. 3. 30-A MRSA §4722, sub-§1, ¶GG is enacted to read:
(1) Allocate the credit;
(2) Administer and enforce the requirements of the credit; and
(3) Perform other functions and duties necessary for the proper administration of the credit, including providing any necessary certifications and notices to taxpayers and to the Department of Administrative and Financial Services, Bureau of Revenue Services containing information required by the State Tax Assessor necessary for determining eligibility and the amount of the credit for each taxable year.
Rules adopted under this paragraph are routine technical rules.
Sec. 4. 36 MRSA §191, sub-§2, ¶KKK is enacted to read:
Sec. 5. 36 MRSA §2534, as enacted by PL 2011, c. 548, §21 and affected by §36, is amended to read:
§ 2534. Credits for rehabilitation of historic properties and affordable housing
A taxpayer is allowed a credit credits against the tax otherwise due under this chapter as determined under section sections 5219-BB and 5219-WW.
Sec. 6. 36 MRSA §5219-WW is enacted to read:
§ 5219-WW. Credit for affordable housing
(1) Either the construction of one or more new buildings or the adaptive reuse of one or more previously constructed buildings that have not been previously used for residential purposes;
(2) Subject to a restrictive covenant requiring an income mix in which at least 60% of the units in the project to which credits are allocated are restricted to households with income at or below 50% of area median gross income; and
(3) Eligible for the 30% present value credit as described in Section 42 of the Code as a result of tax-exempt financing described in Section 42(h)(4)(B) of the Code.
A credit may be allowed for an affordable housing project under paragraph A or B but not both.
(1) Any previously allocated credits returned to the authority, excluding any credits recaptured under subsection 7, must be added to that amount; and
(2) The authority may not allocate more than $15,000,000 in any calendar year.
(1) The first taxable year in which the federal low-income housing tax credit for that project is claimed for projects allocated a credit pursuant to subsection 2, paragraph A; and
(2) The first taxable year for which the project has an allocation of credit from the authority.
(1) The project was placed in service for federal tax purposes in the immediately preceding calendar year; and
(2) The allocation is made no later than the 60th day of the calendar year following the year in which the project was placed in service.
(1) In which at least 60% of the residential units for which credits are allocated are restricted to households with income at or below 50% of area median gross income; or
(2) That is a qualified rural development preservation project.
The requirements and the repayment obligation in this paragraph must be set forth in a restrictive covenant executed by the owner of the credit-qualified affordable housing project for the benefit of and enforceable by the authority and recorded in the appropriate registry of deeds before the owner of the property claims the credit.
In meeting these targets, senior housing that is located in rural areas may be included in the percentages in both paragraphs A and B.
In allocating the credit for the construction or adaptive reuse of buildings for new rental units, the authority shall require or provide incentives to encourage, for a minimum of 4 units or 20% of the total number of units, whichever is greater, that occupancy preference be given to persons who qualify for supportive housing.
(1) The number and type of new residential units created;
(2) The number and type of affordable United States Department of Agriculture, Office of Rural Development, Rural Housing Service residential units preserved;
(3) The amount of credits issued during the period being reviewed and the amount of other investment leveraged by the credits; and
(4) The extent to which allocations of the credits have met the targets described in subsection 8.
The Office of Program Evaluation and Government Accountability shall provide a report of its evaluation under this subsection to the joint standing committee of the Legislature having jurisdiction over taxation matters.