HB 21 – HFC Reform

HB 21 reforms how Housing Finance Corporations (HFCs) operate and receive property tax exemptions. It reins in their authority by confining them to their sponsoring city or county, preventing developers from exploiting HFCs to dodge taxes statewide. To be eligible for tax breaks, developments must reserve a set portion of units for lower- and moderate-income tenants and demonstrate substantial rent discounts compared to market rates. The bill ensures taxpayer dollars are not subsidizing projects that provide little public benefit by requiring rigorous affordability, transparency, and accountability standards. It also mandates annual audits of qualifying developments, which must be publicly disclosed and reviewed by the state. If a project fails to meet these standards or does not submit an audit, it risks losing its tax-exempt status. This helps prevent abuse and ensures HFCs are delivering on their promise to support truly affordable housing. Overall, the bill aligns with fiscal conservative values by curbing taxpayer-funded perks for private developers and promoting oversight and efficiency in local housing programs.