32.111. Affordable housing assistance activities and affordable housing units, market rate housing in distressed communities, or workfare renovation projects, business firms proposing to provide, proc - Missouri Statutes

Affordable housing assistance activities and affordable housingunits, market rate housing in distressed communities, or workfarerenovation projects, business firms proposing to provide, procedurefor approval and tax credit--restricted use of property to createa lien.

32.111. Any business firm which engages in providing affordablehousing assistance activities or market rate housing in distressedcommunities as defined in section 135.530, RSMo, in the state of Missourishall receive a tax credit as provided in section 32.115 if the commissionor its delegate approves a proposal submitted by one or more business firmsfor the provision of affordable housing units or market rate housing indistressed communities or in accordance with the requirements ofparticipation in the workfare renovation project in sections 215.340 to215.355, RSMo. The proposal shall set forth the program of affordablehousing to be conducted, the location and number of affordable housingunits, the neighborhood area to be served, why the program is needed, thetime period for which affordable housing units shall be provided, theestimated amount to be invested in the program, plans for implementing theprogram and a list of the business firms proposing to provide affordablehousing assistance activities which are part of the proposal. The same typeof information shall be provided in proposals for market rate housing indistressed communities. In the case of rental units of affordable housing,but not market rate housing in distressed communities, all proposalsapproved by the commission shall require a land use restriction agreementstating the provision of affordable housing on such property for a timeperiod deemed reasonable by the commission. In the case of owner-occupiedunits of affordable housing, all proposals approved by the commission shallrequire a land use restriction agreement for a time period deemedreasonable by the commission requiring any subsequent owner, except alender with a security interest in the property, to be an owner occupantwhose income at the time of acquisition is at or below the level describedin section 32.105, and further requiring the acquisition price to anysubsequent owner shall not exceed by more than a five percent annualappreciation the acquisition price to the original, eligible owner at thetime tax credits are first claimed. The land use restriction agreementshall constitute a lien as described in subdivision (4) of subsection 3 ofsection 32.115. The restriction shall be approved by the property ownerand shall be binding on any subsequent owner of the property unlessotherwise approved by the commission. In approving a proposal, thecommission may authorize the use of tax credits by one or more of thebusiness firms listed in the proposal and shall establish specificrequirements regarding the degree of completion of affordable housingassistance activities or market rate housing activities in distressedcommunities necessary to be eligible for tax credits provided pursuant tothis section. If, in the opinion of the commission or its delegate, abusiness firm's investment can more consistently with the purposes of thissection be made through a neighborhood organization, tax credits may beallowed as provided in this section. The commission may approve requestsfor multiyear credit commitments provided eligibility is maintained. Thecommission or its delegate is hereby authorized to promulgate rules andregulations for establishing criteria for evaluating such proposals bybusiness firms for approval or disapproval, for establishing housingpriorities for approval or disapproval of such proposals by business firms,and for the certification of eligibility for tax credits authorizedpursuant to this section. The decision of the commission or its delegateto approve or disapprove a proposal pursuant to this section shall be inwriting, and if approved, the maximum credit allowable to the business firmshall be stated. A copy of the decision of the commission or its delegateshall be transmitted to the director of revenue and to the governor. Acopy of the certification approved by the commission and a statement of thetotal amount of credits approved by the commission, the amount of creditspreviously taken by the taxpayer and the amount being claimed for thecurrent tax year shall be filed in a manner and form designated by thedirector of revenue for any tax year in which a tax credit is beingclaimed.

(L. 1990 H.B. 960, A.L. 1993 S.B. 376, A.L. 1996 H.B. 1237, A.L. 1998 H.B. 1052, A.L. 1999 S.B. 20)

Effective 1-1-00

CROSS REFERENCE:

Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830