2013 Arizona Revised Statutes
Title 42 - Taxation
§ 42-11133 Exemption for low income housing projects
42-11133. Exemption for low income housing projects
A. Property that is used exclusively for rental housing and related facilities is exempt from taxation if:
1. The property is not used or held for profit.
2. The property is owned and operated by, or is a wholly owned subsidiary of, a charitable fund, foundation or corporation, including a limited partnership in which the managing general partner is an eligible nonprofit corporation.
3. All of the following applies:
(a) The acquisition, rehabilitation, development or operation of the property, or any combination of these factors, is financed with tax exempt mortgage revenue bonds or general obligation bonds or is financed by local, state or federal loans or grants and the rents of the occupants do not exceed the rents that are prescribed by deed restrictions or by regulatory agreements pursuant to the financing or financial assistance terms.
(b) The owner of the property is eligible for and receives tax credits for low income residential housing established under section 42 of the internal revenue code.
(c) The property is used as an assisted living facility for low income elderly residents.
(d) The facility cannot exceed two hundred residents.
B. To qualify under this section, the owner of the property must:
1. For any claim that is filed in any fiscal year, certify and ensure, subject to paragraph 2 of this subsection, that there is an enforceable and verifiable agreement with a public agency, a recorded deed restriction or any other legal document that restricts the use of the property and requires that the rents do not exceed the terms that are prescribed by the financing or financial assistance terms. In the case of a limited partnership in which the managing general partner is an eligible nonprofit corporation, the requirements under this paragraph must be included in an enforceable and verifiable agreement with a public agency or in a recorded deed certified by the limited partnership.
2. Certify that the monies that would have been necessary to pay the property taxes are used to maintain the affordability of or otherwise reduce the rents of the units that are occupied by eligible low income households.
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