If enacted, SB1602 would authorize the Arizona Department of Housing to allocate up to $4 million in tax credits annually for qualified affordable housing projects, effectively promoting the establishment of additional housing units for low-income individuals and families. The bill also delineates procedures for application, evaluation, and qualification for these credits, thereby streamlining the process for developers and potential investors, and aims to stimulate greater investment in affordable housing through defined state support.
Summary
SB1602 is a legislative proposal introduced in the Arizona Senate, aimed at amending the Affordable Housing Tax Credit regulations under Section 41-3954 of the Arizona Revised Statutes. The bill seeks to establish a framework for allocating tax credits for housing projects that comply with federal low-income housing tax credit criteria. Specifically, the bill stipulates that tax credits shall be allocated for projects that provide affordable housing and were placed in service after June 30, 2022, with an incentive of subsidizing at least fifty percent of the federal tax credit allowed for each taxable year during the applicable credit period.
Contention
While supporters argue that SB1602 is a critical step toward addressing the state's affordable housing shortage, concerns have been voiced regarding the potential limitations it may impose on local autonomy in housing decisions. Critics may argue that the requirements for project eligibility and the strict tax credit allocation process could restrict innovative approaches to affordable housing, thus limiting the effectiveness and adaptability of solutions in addressing diverse local housing needs. Furthermore, the prohibition on receiving local property tax abatements could deter some developers from pursuing these projects, as it may reduce potential returns on their investments.
Establishes deadline for DEP implementation of prescribed burn program, and provides for establishment of prescribed burn acreage goals, schedules, calendars, training program, and mobile deployment units to provide on-site prescribed burn training and assistance.