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1988-31 Amending KIB Code 3.20.080 Exempting From Taxation, the Possessory or Leasehold Interests in Low-Incoming Housingread: KODIAK ISLAND BOROUGH ORDINANCE NO. 88 -31 -0 By: Mayor Selby Drafted by: Borough Assessor Introduced: 10/20/88 Amended: 10/20/88 Public Hearing: 12/01/88 Adopted: 12/01/88 AN ORDINANCE AMENDING KIB CODE 3.20.080, EXEMPTING FROM TAXATION, THE POSSESSORY OR LEASEHOLD INTERESTS 114 LOW- INCOME HOUSING. WHEREAS. the Borough is authorized by AS 29.45.050 (1) to exempt from taxation, interests, other than record ownership, in real ',property of an individual residing in the property if the property has been developed, improved, or acquired with federal funds for low- income housing is owned or managed as low- income housing by the Alaska State Building or a regional housing authority formed under AS 18.55.996; and WHEREAS, numerous low- income housing units exist within the Kodiak Island Borough: and WHEREAS, if the Kodiak Island Borough does not adopt this ordinance, those private interests held by individuals residing in the low- income housing units and Mutual Help Homeownership Opportunity Program properties will hence become taxable as of January 1, 1989 and could jeopardize the receipt of payments in lieu of taxes; and WHEREAS, the property tax revenues generated from the possessory interest assessments would appear to be, in aggregate, less than the payments in lieu of taxes and in all probability pose substantial administrative difficulty and added costs, NOW, THEREFORE, BE IT ORDAINED BY the Kodiak Island Borough Assembly that: Section 1. This ordinance is of a permanent nature and shall become a part of the Code of Ordinances. Section 2. Section 3.20.080 is amended by adding a new section to E. The private interests, other than fee simple record ownership, in real property of an individual residing in the property if the property has been developed, improved, or acquired with federal funds for low- income housing and is owned or managed as low- income housing by the Alaska State Building Authority or a regional housing authority formed under AS 18.55.996. This section does not prohibit the Kodiak Island Borough from continuing to receive payments in lieu of taxes authorized under federal law. This section applies only to those low- income housing units in existence prior to January 1, 1989, hence, any new projects, real property acquisitions and additions to the existing properties after January 1, 1989, shall require an ordinance of the Kodiak Island Borough Assembly prior to the granting of an exemption under this section. :Ordinance No. 88 -31 -0 Page 1 of 2 ATTEST: Section 3. This ordinance shall become effective January 1, 1989. PASSED AND APPROVED THIS 1st DAY OF DECEMBER, 1988. Ordinance No. 88 -31 -0 Page 2 of 2 Kodiak Island Borough