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RATIONALE It can be challenging to stitch together financing for income -restricted housing projects and a property tax exemption could help offset project costs, catalyzing construction of new, rehabilitated, or improved affordable housing. ➢ Housing Goals DESCRIPTION Colorado House Bill 23-1184 recently expanded the existing low-income housing property tax exemption to include more nonprofit organizations that build and sell affordable housing. The exemption can last for up to 10 years and creates a new property tax exemption for land owned by community land trusts and other nonprofit affordable homeownership providers that develop permanently affordable for -sale homes. The City can adopt this tax exemption locally to assist affordable housing projects, particularly those needed under the city's commitment under Proposition 123. The property must be restricted by a deed that limits its resale price and requires a long-term land lease with a community land trust or nonprofit affordable homeownership developer. The property must also be sold to households below 100 percent Area Median Income (AMI). ACCESSING THE EXEMPTION After January 1, 2024, there are three ways that a nonprofit affordable housing developer can receive this exemption. Land donation agreement between the landowner and nonprofit. • Resolution that designates property for construction or rehabilitation of for -sale affordable housing. • Resolution that approves the purchase of the property for land banking with the purpose of constructing or rehabilitating for -sale affordable housing. ACTION 2.2 BENEFITS SUMMARY INCOME LEVEL GEOGRAPHIC ACTION TYPE HOUSING PRODUCTION COST SERVED SCALE LOW - INCENTIVE MODERATE CITYWIDE INCOME Louisville Housing Plan Part 4: Housing Strategies and Actions 37