|Posted:||January 22, 2020 01:20 PM|
|From:||Representative Natalie Mihalek and Rep. Harry Readshaw|
|To:||All House members|
|Subject:||Housing Authority Realty Transfer Tax|
|We intend to introduce legislation that will allow housing authorities throughout the state to further develop much-needed affordable housing options under the Rental Assistance Demonstration (RAD) program administered by the U.S. Department of Housing and Urban Development (HUD).
Our bill updates the Tax Reform Code to exclude RAD projects from the realty transfer tax (RTT). Our legislation provides that the transfer of real estate is excluded from the RTT when the transaction is made by a housing authority, by long-term ground lease to another housing authority, an entity whose purpose is to develop affordable housing that uses low-income tax housing tax credits, or the RAD, or by or to a housing authority of an ownership interest in a partnership or limited liability company by a low-income housing tax credit investor.
As a result of a Senate amendment to what became Act 100 of 2018, one county in our state is already utilizing this provision. Therefore, our bill will extend the exclusion to housing authorities throughout the state. This is necessary because current law does not provide for the various modern models available to develop affordable housing.
I hope you will join us in co-sponsoring this important legislation.
Introduced as HB2303