News Department

Bill allowing long-term tax exemption for low-income housing is signed into law

This week the governor signed a bill (A2536/S538) to allow municipalities to accept payment-in-lieu-of-taxes for state or federally-subsidized low-income housing beyond the term of a housing project’s mortgage, according to the sponsor of the bill Assemblyman Hal Wirths.

The town of Sparta established such an agreement with a low-income senior housing project; however, it became nullified when the housing complex paid off its mortgage sooner than expected, Wirths said.

“Our vulnerable and income-limited seniors need affordable housing and this law will help ensure they are able to live in the place they have called home for many years,” Wirths said (R-Sussex-Warren-Morris).

According to the Department of Human Services, more than half of retired elder‐only households in New Jersey lack annual incomes that will insulate them against poverty as they age, Wirths said.

The measure amends the Long Term Tax Exemption Law and the Housing and Mortgage Finance Agency Law of 1983 to allow state or federally-subsidized housing projects to receive a tax exemption beyond the current requirement of up to 35 years or until the expiration of its first mortgage. In lieu of property taxes, each housing project must pay 20 percent of annual gross revenue from each project situated on the property for each year of operation, Wirths said.

Assemblyman Parker Space is a cosponsor of A2536, which passed unanimously in December 2019. The Senate version of the bill, sponsored by Sen. Steve Oroho, passed unanimously in December 2018, Wirths said.

Tags

Jay Edwards

Born and raised in Northwest NJ, Jay has a degree in Communications and has had a life-long interest in local radio and various styles of music. Jay has held numerous jobs over the years such as stunt car driver, bartender, voice-over artist, traffic reporter (award winning), NY Yankee maintenance crewmember and peanut farm worker. His hobbies include mountain climbing, snowmobiling, cooking, performing stand-up comedy and he is an avid squirrel watcher. Jay has been a guest on America’s Morning Headquarters,program on The Weather Channel, and was interviewed by Sam Champion.

Related Articles

Back to top button
Close