1.Designation of captured assessed value. A municipality may retain all or part of the tax increment revenues generated from the increased assessed value of an affordable
housing development district for the purpose of financing the affordable housing development program. The amount of tax increment
revenues to be retained is determined by designating the captured assessed value. When an affordable housing development program
for an affordable housing development district is adopted, the municipal legislative body shall adopt a statement of the percentage
of increased assessed value to be retained as captured assessed value in accordance with the affordable housing development
program. The statement of percentage may establish a specific percentage or percentages or may describe a method or formula
for determination of the percentage. The municipal assessor shall certify the amount of the captured assessed value to the
municipality each year.
[
2003, c. 426, §1 (NEW)
.]
2.Certification of assessed value. Upon or after the formation of an affordable housing development district, the assessor of the municipality in which the
district is located shall certify the original assessed value of the taxable property within the boundaries of the affordable
housing development district. Each year after the designation of an affordable housing development district, the municipal
assessor shall certify the amount by which the assessed value has increased or decreased from the original value.
Nothing in this subsection allows or sanctions unequal apportionment or assessment of the taxes to be paid on real property
in the State. An owner of real property within the affordable housing development district pays real property taxes apportioned
equally with property taxes paid elsewhere in the municipality.
[
2003, c. 426, §1 (NEW)
.]
3.Affordable housing development program fund; affordable housing tax increment revenues. If a municipality has designated captured assessed value under subsection 1, the municipality shall:
A. Establish an affordable housing development program fund that consists of the following:
(1) A project cost account that is pledged to and charged with the payment of project costs that are outlined in the financial
plan and are paid in a manner other than as described in subparagraph (2); and
(2) In instances of municipal indebtedness, a development sinking fund account that is pledged to and charged with the payment
of the interest and principal as the interest and principal fall due and the necessary charges of paying interest and principal
on any notes, bonds or other evidences of indebtedness that were issued to fund or refund the cost of the affordable housing
development program fund; [2003, c. 426, §1 (NEW).]
B. Annually set aside all affordable housing tax increment revenues on captured assessed values and deposit all such revenues
to the appropriate affordable housing development program fund account established under paragraph A in the following order
of priority:
(1) To the affordable housing development sinking fund account, an amount sufficient, together with estimated future revenues
to be deposited to the account and earnings on the amount, to satisfy all annual debt service on bonds and notes issued under
section 5250-D and the financial plan; and
(2) To the affordable housing project cost account, an amount sufficient, together with estimated future revenues to be
deposited to the account and earnings on the amount, to satisfy all annual affordable housing project costs to be paid from
the account; [2003, c. 426, §1 (NEW).]
C. Make transfers between affordable housing development program fund accounts established under paragraph A as required, provided
that the transfers do not result in a balance in the affordable housing development sinking fund account that is insufficient
to cover the annual obligations of that account; and [2003, c. 426, §1 (NEW).]
D. Annually return to the municipal general fund any tax increment revenues remaining in the affordable housing development
sinking fund account established under paragraph A in excess of those estimated to be required to satisfy the obligations
of the development sinking fund account after taking into account any transfers made under paragraph C. The municipality,
at any time during the term of the district, by vote of the municipal officers, may return to the municipal general fund any
tax increment revenues remaining in the project cost account established under paragraph A in excess of those estimated to
be required to satisfy the obligations of the development project cost account after taking into account any transfer made
under paragraph C. In either case, the corresponding amount of local valuation may not be included as part of the captured
assessed value as specified by the municipality. [2003, c. 426, §1 (NEW).]
[
2003, c. 426, §1 (NEW)
.]
SECTION HISTORY
2003, c. 426, §1 (NEW).
Data for this page extracted on 11/06/2009 08:32:38.