Committee backs narrow fix to let qualifying senior housing co‑ops seek property‑tax exemption

Representatives Garcia Sander and Basenacker asked the committee to approve HB 12‑04, a targeted clarification that would allow qualifying senior housing cooperatives to be treated as projects of a local housing authority and thus become eligible for an existing property‑tax exemption given to certain affordable housing developments. "This bill fixes a clear inequity," Rep. Garcia Sander said, noting the proposal would let seniors who own shares in co‑op units access the same relief available to owners of single‑family homes and other qualifying residences.

Witnesses who live in cooperative senior housing described the model as an affordable, community‑oriented option that allows older adults to downsize while remaining independent and engaged. Several residents testified that moving into a co‑op often eliminated their ability to claim the standard senior homestead exemption because title is held by the cooperative rather than the individual occupant.

Legislative Council fiscal staff said their upper‑bound estimate assumed all identified co‑ops (10 in the state) qualified and applied, yielding roughly $800,000 in forgone local property tax revenues (about $80,000 per co‑op). Sponsors and supporters emphasized the note likely overstates near‑term impact because the bill requires a cooperative to apply to the local housing authority and meet program criteria; sponsors also offered technical amendments to align age thresholds with HUD and local authority rules.

The committee adopted amendments to change the qualifying age from 65 to 62 and to remove the "low income" phrasing to preserve local housing authority discretion. Members voted 7‑3 to send the bill as amended to Appropriations.

Next steps: HB 12‑04 goes to the Appropriations Committee for fiscal consideration.