HomeMy WebLinkAbout1993-02-22 93-173 RESOLVElmrodCrlf For
Ohms,
Li;br 7_.
ODIC 1-22-1993..
Cim No.
9393
Item/S\lp::: REI
Calling upontheState of Maine to Assist Municipalities
in Reducing the Erosion of Municipal
Assessed Yalues.Besulting From -
AuAcn,SNe oeye^menu
Che Pu[chaee Q Taxable Residential Properties By.
- [iCle
Non-Profit
L 1
T Ea [ E
TO BE DISTRIBUTED
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Manxse Y: Comments:
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lmrodCrlf For
Ohms,
Li;br 7_.
93-123
"signed to Councilor Shubert, February 22, 1993
CITY OF BANGOR
(TITLE.) ,wesOli7B . Calling ... ypthe state of Maine to Ase at
Hunin litiejin Reducing th Erosion of Municipal Assessed Values
Resulting from the Purchase of Taxable Residential Properties by
Non -Profit Tax -Exempt Entities
BY Ns P;Y CwxH o(Bw IXry o(Ban¢w:
B LV&D,
WHEREAS, The State of Maine, in August 1989, enacted
the "Affordable Housing Partnership Act of 1989" as an amendment
to the Maine Housing Authorities Act; and
WHEREAS, the primary purposes of the Maine Housing
Authorities Act are to promote residential construction activity,
and to encouragerehabilitation of existing affordable housing
stock; and
WHEREAS, under Subchapter iii of the Affordable
Housing Partnership Act of 1989 f30 -A MRSA SS 5021-5030], the State
of Maine authorized the Maine State Housing Authority to make
direct loans to non-profit housing corporations to develop
affordable housing for lower and moderate income households and for
other purposes; and
WHEREAS, under the current statute, the Maine State
Housing Authority is 'authorized to finance the acquisition of
fisting taxable housing projects by non-profit corporations for
conversion to tax-exempt housing; and
WHEREAS, in calendar year 1992, the City of Bangor
lost $6.33 million in taxable assessed value as a result of the
conversion of existing housing projects from taxable to tax-exempt
status, financed by the Maine State Housing Authority; and
WHEREAS, as of February 19, 1993, an additional $4.87
million in taxable assessed value within the City of Bangor has
been proposed for conversion to tax-exempt status by non-profit
corporations financed by the Maine State Housing Authority under
the existing statute; and
WHEREAS, the conversion of existing housing projects
from taxable to tax-exempt status does nothing to encourage the
development or construction of new affordable housing or to fulfill
other primary purposes of the Heine Housing Authorities Act; and
WHEREAS, the City of Eangor's obligation to provide
municipal services does not cease upon conversion of residential
properties from taxable to tax-exempt status; and
93-1)3
e
R E S O L V E
f
t
IN CITY COUNCIL
Callln U on Che Igau of Mein to Assist
February Z2. 1993
Nonicipallties n
Reducing t e Eros
on of
Peened
Municipal Assessed Value$ Resulting
from
L/
the Purchaser Taxable Residential
Properties
C f-'^—
Y o exExempt Entities.
CITY C PR