PETITION OF:

By Mr. Sciortino of Medford, petition (accompanied by bill, House, No. 3125) of Carl M. Sciortino, Jr., and others for legislation to provide for an income tax credit to landlords of rental properties used as affordable housing. Revenue.

The Commonwealth of Massachusetts

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PETITION OF:

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In the Year Two Thousand and Seven.

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An Act relative to tax incentives for rental properties used as affordable housing.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 6 of Chapter 62 of the General Laws is hereby amended by adding after subsection (l) the following subsection:-

(m)(1) As used in this subsection, the following words and terms shall, unless the context clearly requires otherwise, have the following meanings:-

“Eligible Income Person or Family”, A person or family whose household income does not exceed 60% of the Area Median Household Income, adjusted for family size, as determined by the United States Department of Housing and Urban Development.

“Low-Income Rental Standards”, Rent for units leased as low-income rental units shall not exceed 60% of the Fair Market Rent for the region, as determined by the United States Department of Housing and Urban Development.

“Landlord”, individual or corporation who owns residential real estate available for rent

(2) The landlord of a unit rented to and occupied by an eligible income person or family at a rental amount not exceeding low-income rental standards shall be allowed a credit against taxes imposed by this chapter on personal income if the landlord is an individual, or against taxes imposed by chapter 63 on a corporation if the landlord is a corporation. The credit shall be equal to 100% of the annual fair market rent for the region for the unit rented to the person or family of low-income.

(3) The Department of Housing and Community Development shall promulgate regulations for the application for and approval of certification as an eligible income person or family.

(4) The Department of Housing and Community Development shall set standards of adequate condition and suitability for any unit rented under the terms of this subsection. The department shall further promulgate a procedure of complaint and redress for tenants of units that do not meet said standards.

(5) To qualify for the incentive set in paragraph 2 of this subsection, the landlord shall submit to Department of Housing and Community Development and the Massachusetts Department of Revenue proof of a 1-year or greater lease with a previously approved person or family of low income.