Providing a local option incentivizing landlords to rent unsubsidized properties at below market rent (good landlord tax credit)
The implementation of H2969 would introduce significant changes to state housing law by creating a financial incentive for landlords to participate in the program, potentially increasing the availability of affordable housing units in Massachusetts. Under the bill, property owners can receive a credit of up to $2,000 for each qualified rental unit, though they may only claim this credit for a maximum of six units. This could benefit areas with high demand for low-income housing, but may also raise questions about the burden on local governments and their ability to maintain property tax revenues.
House Bill H2969, titled 'An Act providing a local option incentivizing landlords to rent unsubsidized properties at below market rent (good landlord tax credit),' proposes a tax credit for landlords renting out qualified residential rental properties at below market rates. The bill is targeted at owners of 2 to 4-unit unsubsidized residential rental properties, providing them with a tax credit for the difference between the rent charged and the maximum HOME rent limits established by the U.S. Department of Housing and Urban Development. The intent is to encourage landlords to offer affordable housing options to low-income tenants, seniors, and families with small children.
While the bill aims to address the pressing issue of housing affordability, it may face opposition from those concerned about its implications for local governance and property taxation. Critics may argue that incentivizing private landlords could result in less oversight and varied standards of tenant treatment. Additionally, since the bill allows municipalities to exempt qualified residential rental properties from property taxation, it could lead to significant revenue loss for local governments, challenging their ability to fund essential services. The balance between encouraging affordable housing and maintaining local autonomy and resources will be a key point of contention in the discussions surrounding H2969.