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The 193rd General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO PROPERTY TAX EXEMPTIONS FOR AFFORDABLE ACCESSORY DWELLING UNIT RENTAL PROPERTIES IN THE CITY OF SALEM RESTRICTED AS AFFORDABLE HOUSING

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.  Notwithstanding any general or special law to the contrary, upon the approval by the Salem city council of Salem's affordable accessory dwelling unit ordinance, an affordable accessory dwelling unit in the city of Salem, shall be exempt from taxation under chapter 59 of the General Laws.

SECTION 2.  An exemption under this act shall be based on the value of 1 or more additional bedrooms, not the value of the affordable accessory dwelling unit with a kitchen and bath.

SECTION 3.  The property owner leasing the affordable accessory dwelling unit shall upon initial application and annually thereafter, on September 1, submit to the city of Salem or its agent, documentation necessary to confirm their eligibility for the tax exemption for the affordable accessory dwelling unit.

SECTION 4.  Maximum rents shall not exceed 70 per cent of the established fair market rent limit as established by the United States Department of Housing and Urban Development for the city of Salem for the most recent year.

SECTION 5.  Households who have received a loan administered by the city of Salem for the purpose of building the affordable accessory dwelling unit shall not be eligible for the tax exemption for the term of the loan.

SECTION 6.  This act shall take effect upon its passage.

Approved, September 23, 2022.