Section 4728.402 - Exemption schedule(a)General rule.--A local taxing authority granting a tax exemption under this chapter may provide for a tax exemption on the assessment attributable to the actual cost of new construction or improvements for affordable housing units or up to a maximum cost uniformly established by the municipal corporation. The maximum cost shall uniformly apply to each eligible affordable housing unit constructed or improved within the local taxing authority's jurisdiction.(b)Schedule.--Notwithstanding if an assessment eligible for exemption is based upon actual cost or a maximum cost, the actual amount of taxes exempted shall be in accordance with one of the following schedules, as determined by the local taxing authority: (1) For the following years for which new construction or improvements would otherwise be taxable:(i) For the first year, 100% of the eligible assessment shall be exempted;(ii) For the second year, 100% of the eligible assessment shall be exempted; and(iii) After the second year, the exemption shall terminate.(2) For the following years for which new construction or improvements would otherwise be taxable:(i) For the first year, 100% of the eligible assessment shall be exempted;(ii) For the second year, 50% of the eligible assessment shall be exempted; and(iii) After the second year, the exemption shall terminate.(c) Limitation.--An exemption from a tax under this chapter shall be limited to the additional assessment valuation: (1) Attributable to the actual costs of new construction or improvements to affordable housing units; or(2) Not in excess of the maximum cost per unit established by a local taxing authority.(d) Sale or exchange.--An exemption from a tax under this chapter shall be on the property exempted and shall not terminate upon the sale or exchange of the property.(e) Estimate.--A local taxing authority shall provide upon request an estimate of the amount of assessment exempted for each eligible property based on the exemption schedule under subsection (b).(f) Repayment.-- (1) A local taxing authority shall receive a return of the local taxing authority's proportional share of taxes exempted under this act if, within five years following completion of the new construction or improvements: (i) A serious violation of State law or a municipal code exists on the property and the owner has taken no substantial steps to correct the violation within six months following notification of the violation and for which fines or other penalties or a judgment to abate or correct were imposed by a magisterial district judge or municipal court and a final judgment at law or in equity, not subject to appellate review, was imposed by a court of common pleas; or(ii) The taxpayer is subject to a municipal permit denial under 53 Pa.C.S. Ch. 61 (relating to neighborhood blight reclamation and revitalization).(2) At the time the agreement is entered into between a local taxing authority and the taxpayer who desires tax exemption, if the taxpayer has completed each requirement under section 404, the local taxing authority shall file a lien against the tax-exempt properties at the rate of the estimated amount of assessment under subsection (b). The lien shall be forgiven by the local taxing authority at the end of the fifth year following the completion of the new construction or improvements, if there have been no serious violations against the property that have not been corrected. The lien on the property shall transfer under subsection (d) for a sale or exchange of the property.Added by P.L. TBD 2022 No. 58, § 402, eff. 9/9/2022.