The 20 year Low-income Rental Housing Property Tax Exemption (LIRHPTE) is enabled by state statute. The LIRHPTE provides a 20 year exemption for rental properties constructed after February 12, 1990, or rental properties owned by 501c(3) non-profits. LIRHPTE is for properties that are offered for rent or held for the purpose of developing low-income rental housing. The income limit for the program is 60 percent of the area median income based on household size, as determined annually by the US Department of Housing and Urban Development. An applicant requesting a 20 year exemption is not required to be a non-profit in certain instances.
The Low-income Housing Property Tax Exemption (LITE) is also enabled by state statute. A LITE provides an annual exemption for properties that are used for the purposes of a non-profit corporation. This housing is not required to be rental housing. The LITE program is not currently in effect, as of July 1, 2014.
A LIRHPTE application must be filed on or before December 1 of the calendar year immediately preceding the tax year for which an exemption is requested. If the property is acquired after November 1, an application may be submitted within 30 days after the date of acquisition, but no later than January 1 of the next calendar year.