SB403: Bill Text

SB403, s. 3 Section 3. 70.11 (4a) of the statutes is created to read:

SB403,4,16 70.11 (4a) Low-income housing. (a) For purposes of sub. (4), "low-income housing" means any residential unit within a low-income housing project that is occupied by a low-income or very low-income person or is vacant and is only available to such persons.

SB403,4,18 (b) For purposes of this subsection and sub. (4), "low-income housing project" means a residential housing project for which all of the following apply:

SB403,4,20 1. At least 75 percent of the occupied residential units are occupied by low-income or very low-income persons.

SB403,4,21 2. At least one of the following applies:

SB403,4,23 a. At least 20 percent of the residential units are rented to persons who are very low-income persons or are vacant and are only available to such persons.

SB403,5,3 b. At least 40 percent of the residential units are rented to persons whose income does not exceed 120 percent of the very low-income limit or are vacant and only available to such persons.

SB403,5,7 (c) For purposes of this subsection, low-income persons and very low-income persons shall be determined in accordance with the income limits published by the federal department of housing and urban development for low-income and very low-income families under the National Housing Act of 1937.

SB403,5,11 (d) For purposes of this subsection and sub. (4), all properties included within the same federal department of housing and urban development contract or within the same federal department of agriculture, rural development, contract are considered to be one low-income housing project.

SB403,5,22 (e) Leasing property that is exempt from taxation under sub. (4) as low-income housing does not render it taxable if the lessor uses all of the leasehold income from the property for any of the following expenditures directly related to the low-income housing project to which the property belongs, except that the lessor may use up to 10 percent of the leasehold income for any of the following expenditures directly related to any other low-income housing project under common control with that project and located in this state, and except that the lessor may use any of the leasehold income for debt service for any other low-income housing project under common control with that project, under the same mortgage, and located in this state and such amount is not considered for purposes of the 10 percent maximum described in this paragraph:

SB403,5,23 1. Maintenance.

SB403,5,24 2. Capital replacements.

SB403,5,25 3. Insurance premiums.

SB403,6,1 4. Project management.

SB403,6,2 5. Debt retirement.

SB403,6,3 6. Moneys reserved for project-related purposes.

SB403,6,4 7. General and administrative expenses.

SB403,6,5 8. Social services and other resident services provided at the project.

SB403,6,6 9. Utilities.

SB403,6,7 10. Financing costs.

SB403,6,8 11. Any other expenditure related to preserving and managing the project.

SB403,6,9 12. Any other similar project-related expenditure.

SB403,6,16 (f) 1. Annually, no later than March 1, each person who owns a low-income housing project shall file with the assessor of the taxation district in which the project is located a statement that specifies which units were occupied on January 1 of that year by persons whose income satisfied the income limit requirements under par. (a), as certified by the property owner to the appropriate federal or state agency, and a copy of the federal department of housing and urban development contract or federal department of agriculture, rural development, contract.

SB403,6,18 2. The format and distribution of statements under this paragraph shall be governed by s. 70.09 (3).

SB403,6,22 3. If the statement required under this paragraph is not received on or before March 1, the taxation district assessor shall send the property owner a notice, by certified mail to the owner's last known address of record, stating that failure to file a statement is subject to the penalties under subd. 5.

SB403,7,2 4. In addition to the statement under subd. 1., the taxation district assessor may require that a property owner submit other information to prove that the person's property qualifies as low-income housing that is exempt from taxation under sub. (4).

SB403,7,5 5. A person who fails to file a statement within 30 days after notification under subd. 3. shall forfeit $10 for each succeeding day on which the form is not received by the taxation district assessor, but not more than $500.

SB403, s. 4 Section 4. Initial applicability.

SB403,7,8 (1) This act first applies retroactively to the property tax assessments as of January 1, 2006.

SB403, s. 5 Section 5. Effective date.

SB403,7,10 (1) This act takes effect retroactively on January 1, 2006.

SB403,7,11 (End)