Sec. 1. 36 MRSA §681, sub-§§1-A and 1-B are enacted to read:

1-A.__Cooperative housing corporation.__"Cooperative housing corporation" means an entity organized for the purpose of owning residential real estate in which residents own shares that entitle the shareholder to inhabit a certain space within a residential dwelling.

1-B.__Cooperative property.__"Cooperative property" means the real property, including mobile and manufactured homes, owned by a cooperative housing corporation for the primary purpose of residential use.

Sec. 2. 36 MRSA §681, sub-§2, as enacted by PL 1997, c. 643, Pt. HHH, §3 and affected by §10, is amended to read:

2. Homestead. "Homestead" means any residential property, including cooperative property, in this State assessed as real property owned by an applicant or held in a revocable living trust for the benefit of the applicant and occupied by the applicant as the applicant's permanent residence or owned by a cooperative housing corporation and occupied by an applicant who is a qualifying shareholder. A "homestead" does not include any real property used solely for commercial purposes.

Sec. 3. 36 MRSA §681, sub-§5 is enacted to read:

5.__Qualifying shareholder.__"Qualifying shareholder" means a person who is a:

A.__Shareholder in a cooperative housing corporation that owns a homestead in this State;

B.__Shareholder for the preceding 12 months in the cooperative housing corporation specified in paragraph A; and

C.__Permanent resident of this State.

Sec. 4. 36 MRSA §683, sub-§5 is enacted to read:

5.__Determination of exemption for cooperative housing corporation.__A cooperative housing corporation may apply for an exemption under this subchapter.__The exemption is equal to the amount specified in subsection 1 multiplied by the number of units in the cooperative property occupied by qualifying shareholders.__A cooperative housing corporation that receives an exemption pursuant to this section shall apportion the property