SB 2646

ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2646, AS AMENDED. AMENDMENT #2 authorizes an industrial development corporation ("corporation"") to negotiate and receive from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project, unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes be approved by the municipality, if the payments are payable to all applicable taxing jurisdictions and meet other criteria and either of the following requirements a re met:  The payments are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project become a tax credit housing project and the chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.  The payments are less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of each taxing jurisdiction has executed a letter supporting the project that is filed with the corporation. Present law authorizes a corporation to negotiate and receive payments in lieu of taxes with respect to a tax-credit housing project if the payments in lieu of taxes are payable to all applicable taxing jurisdiction in which the project is located and ar e not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of the municipality has executed a letter supporting th e project that is filed with the corporation. Present law grants a corporation the authority to negotiate, accept, or waive from any of the corporation's or lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that forme d the corporation. Any such authorization must be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of t he municipality or municipalities making the delegation may require the corporation to submit any agreement for approval. This amendment also requires a corporation to give written notice of any agreement that would result in payments in lieu of taxes being made to any taxing jurisdiction that are less than the taxes that otherwise would be payable to such jurisdiction. Af ter receiving such a notice, the chief executive officer may either notify the corporation that the agreement must be submitted to the legislative body of that taxing jurisdiction for approval or notify the corporation that the chief executive officer doe s not object to the proposed agreement. If the chief executive officer has not responded within 10 days, then the corporation may proceed into the proposed agreement."