HB829: establishing authority for a state property tax bank administered by the housing finance authority and requiring the housing finance authority board to develop a proposal and report to the general court.

HB 829 – AS INTRODUCED

2007 SESSION

07-0032

10/05

HOUSE BILL 829

AN ACT establishing authority for a state property tax bank administered by the housing finance authority and requiring the housing finance authority board to develop a proposal and report to the general court.

SPONSORS: Rep. Ingbretson, Graf 5; Rep. Hinkle, Hills 19; Rep. Itse, Rock 9; Rep. Mooney, Hills 19

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes criteria for the development of a New Hampshire property tax bank for persons over 62 years of age to finance payment of their property taxes through funds provided by the housing finance authority.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0032

10/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT establishing authority for a state property tax bank administered by the housing finance authority and requiring the housing finance authority board to develop a proposal and report to the general court.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Property Tax Bank Program; Housing Finance Authority. The general court hereby authorizes the development of a state property tax bank program to be administrated by the New Hampshire housing finance authority following the enactment of appropriate legislation as outlined in this act. The housing finance board, established in RSA 204-C:3, shall develop a program to be submitted to the general court for future action in legislation which provides a self-funding means for the state to intervene and pay the property taxes of qualified individuals who find that the property tax burden created by home ownership makes further occupancy and ownership a hardship. Participation shall be limited by the funds provided from proceeds of bonds. Such program shall include at least the following:

I. Allow for the owner of any primary or secondary residential property in this state, and which is wholly owned by New Hampshire residents, to participate in the program provided the person:

(a) Is at least 62 years of age.

(b) Has been a resident of the state for a period of at least 5 years.

(c) Has resided in or occupied the property and made all property tax payments due for at least the last 5 years, and does not utilize the property for any commercial or rental purposes.

II. The funding of the payment of participant’s property tax liability by the establishment of a state bond authorization providing proceeds from the sale of bonds by the state treasurer under the full faith and credit and the taxing power of the state. Participants shall be required to pay a reasonable initial fee representing the cost of the housing finance authority’s duty under the program and annual interest on the amount of property tax payments funded by the program.

III. The establishment of procedures for suitable security to be pledged and procedural requirements for the repayment at the time of sale of the property by an owner or upon the death of the participant. Liens on the property of a participant shall have first priority of repayment.

IV. Reasonable procedures for applications, including time frames and numbers of participants, and forms and other documents necessary for the establishment of the state property tax bank program. Qualified applicants shall be included in the program on a first-come, first-served basis.

2 Report. The housing finance board shall report on its development of the program outlined in section 1 of this act not later than November 1, 2007. The initial report, and a final report due November 1, 2008 which shall include any proposed legislation in furtherance of this act, shall be submitted to the house clerk, the senate clerk, the speaker of the house of representatives, the senate president, and the state library.

3 Effective Date. This act shall take effect 60 days after its passage.