Bill Text: AZ SB1280 | 2018 | Fifty-third Legislature 2nd Regular | Introduced


Bill Title: Residential housing assistance; funding sources

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-24 - Senate read second time [SB1280 Detail]

Download: Arizona-2018-SB1280-Introduced.html

 

 

 

REFERENCE TITLE: residential housing assistance; funding sources

 

 

 

State of Arizona

Senate

Fifty-third Legislature

Second Regular Session

2018

 

 

SB 1280

 

Introduced by

Senator Farley

 

 

AN ACT

 

Amending sections 11-1133, 11-1135, 41-3955, 41-5352 and 42-1116, Arizona Revised Statutes; amending title 43, chapter 3, article 1, Arizona Revised Statutes, by adding section 43-302; relating to residential housing assistance.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 11-1133, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1133.  Affidavits; requirements; recording; definition

A.  Each deed evidencing a transfer of title and any contract relating to the sale of real property shall have appended at the time of recording an affidavit of the seller and the buyer to the transaction, or the agent of either the seller or buyer, or both, in a form approved by the department of revenue, who shall declare and jointly certify the following information:

1.  The name and address of the buyer and seller.

2.  The name and address where a tax statement may be sent.

3.  The complete legal description of the property.

4.  The situs address, if any, of the property.

5.  The date of sale.

6.  The total consideration paid for the property, the amount of cash down payment and whether or not the type of financing included cash, a new third party third‑party loan, a new loan from the seller, an assumption of an existing loan or an exchange or trade of property.

7.  Whether or not the estimated market value of personal property received by the buyer equals five per cent percent or more of the total consideration.

8.  The assessor's parcel number or numbers assigned to the real property by the county assessor or, in the case of a new parcel or parcels not yet assigned a parcel number, the parcel number or numbers of the previous parcel or parcels from which the new parcel or parcels are created.

9.  The conditions of the transaction, including the relationship, if any, of the parties.

10.  The use and description of the property and, in the case of a residential dwelling, whether the property is to be owner‑occupied or rented.

11.  The name and address of the person to contact regarding information contained on the affidavit.

B.  If a beneficiary of a foreclosed trustee's deed receives payment based on private mortgage insurance covering the sale that is in addition to the proceeds of the sale, the beneficiary shall submit, in a form approved by the department of revenue, to the county recorder in the county where the property is located within four months after the date of the trustee's sale a beneficiary's declaration of additional funds received that contains the following:

1.  The county assessor's parcel number or numbers assigned as of the date of the trustee's sale.

2.  The name and address of the beneficiary submitting the declaration.

3.  The date of the trustee's sale.

4.  The highest bid amount received by the trustee at the trustee's sale.

5.  The recording number of the trustee's deed on sale.

6.  The amount of any additional compensation received by the beneficiary within three months after the date of the trustee's sale.

C.  For any seller described in paragraph 1 or 2 of this subsection, the deed evidencing the transfer of title must have a separate affidavit, in addition to the affidavit described in subsection A of this section, in a form approved by the department and signed by the seller or an agent of the seller, under penalty of perjury and appended to the deed at the time of recording, stating the seller's address and federal tax identification number assigned pursuant to section 6109 of the internal revenue code and the dollar amounts required under subsection A, paragraph 6 of this section.  The affidavit form shall include a notice that the information included in the affidavit is confidential and is subject to title 42, chapter 2, article 1 prohibiting the unauthorized disclosure of confidential information except as provided by law.  The exemptions under section 11‑1134 apply to this subsection.  This subsection applies if the seller is either:

1.  An individual and either the tax return required to be filed with the United States secretary of the treasury pursuant to section 6045(e) of the internal revenue code indicates, or the authorization for the disbursement of the monies resulting from the transaction instructs, that the monies be disbursed to a seller, or to an escrow agent of a seller, with a last known address outside the boundaries of this state at the time of the transfer of title.  The individual is subject to the requirements for filing a tax return pursuant to section 43-302 and paying tax on the consideration paid for the property in an amount determined pursuant to title 43, chapter 10.

2.  A corporation that, immediately after the transfer of title to the property, is a foreign corporation that does not qualify by law to transact business in this state and does not maintain and staff a permanent office in this state.  The corporation is subject to the requirements for filing a tax return pursuant to section 43-302 and paying tax on the consideration paid for the property in an amount determined pursuant to title 43, chapter 11.

C.  D.  The county recorder shall refuse to record any deed and any contract relating to the sale of real property if a complete affidavit of legal value is all affidavits required by this section are not appended, unless the instrument bears a notation indicating an exemption pursuant to section 11‑1134.

D.  E.  An affidavit is complete for the purposes of this section if all of the required information is stated on the affidavit form or is indicated on the form as "not applicable".

F.  For the purposes of this section, "internal revenue code" has the same meaning prescribed by section 42-1001. END_STATUTE

Sec. 2.  Section 11-1135, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1135.  Transmitting affidavit or data to county assessor, Arizona state library, archives and public records and department of revenue

A.  The county recorder shall:

1.  Place the fee or recording number of the deed and the date of recording on the original affidavit of legal value prescribed by section 11-1133, subsection A.

2.  Scan the affidavit of legal value and transmit an electronic copy to the department and the Arizona state library, archives and public records, and transmit either the original or an electronic copy of the original to the county assessor.

3.  Place the recording number of the deed and the date of recording on the original of each affidavit prescribed by section 11-1133, subsection C and transmit the original affidavit to the department.

B.  The county assessor shall transmit the data contained within the in each affidavit of full cash value to the department.

C.  The county shall transmit the each original affidavit of full cash value, when no longer in active use, to the Arizona state library, archives and public records. END_STATUTE

Sec. 3.  Section 41-3955, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3955.  Housing trust fund; purpose; annual report

A.  The housing trust fund is established, and the director shall administer the fund.  The fund consists of:

1.  Monies from unclaimed property deposited in the fund pursuant to section 44‑313.

2.  Monies transferred pursuant to section 35‑751. and

3.  Income tax collections from nonresident real estate sales deposited pursuant to section 42-1116, subsection B, paragraph 6.

4.  Investment earnings.

B.  On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

C.  Fund monies shall be spent on approval of the department for developing projects and programs connected with providing housing opportunities for low and moderate income households and for housing affordability programs.  Pursuant to section 44‑313, subsection A, a portion of fund monies shall be used exclusively for housing in rural areas.

D.  In approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low income low-income families and that provide housing and shelter to families that have children.

E.  The director shall report annually to the legislature on the status of the housing trust fund.  The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility.  The report shall be submitted to the president of the senate and the speaker of the house of representatives, and a copy provided to the secretary of state, no later than September 1 of each year.

F.  Monies in the housing trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

G.  An amount not to exceed ten percent of the housing trust fund monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund.

H.  For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government.  The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. END_STATUTE

Sec. 4.  Section 41-5352, Arizona Revised Statutes, is amended to read:

START_STATUTE41-5352.  Arizona finance authority; fund

A.  The Arizona finance authority is established in the office of economic opportunity.

B.  The governor shall appoint the director of the authority to serve at the pleasure of the governor.

C.  The Arizona finance authority operations fund is established consisting of:

1.  Monies deposited pursuant to section 41‑5355. 

2.  Income tax collections from nonresident real estate sales deposited pursuant to section 42-1116, subsection B, paragraph 6.  Monies deposited pursuant to this paragraph shall be used exclusively for residential housing down payment assistance programs structured for first‑time homebuyers who must both:

(a)  Attend a homebuyer counseling program offered through a housing counseling agency approved by the United States department of housing and urban development.

(b)  Agree to repay any provided financial assistance on the sale or refinancing of their residential property.

D.  The authority shall administer the fund.  Monies in the fund are continuously appropriated.

D.  E.  At the end of the fiscal year, the authority shall transfer all unencumbered monies deposited in the fund pursuant to subsection C, paragraph 1 of this section in excess of the authority's operating costs to the economic development fund established by section 41‑5302. END_STATUTE

Sec. 5.  Section 42-1116, Arizona Revised Statutes, is amended to read:

START_STATUTE42-1116.  Disposition of tax revenues

A.  The department of revenue shall promptly deposit, pursuant to sections 35‑146 and 35‑147, all monies it collects from the taxes administered pursuant to this article except the telecommunication services excise tax, separately accounting for each type of tax and each tax classification within each type of tax.  At the same time the department of revenue shall also furnish copies of the transmittal schedules to the director of the department of administration.

B.  Except as provided by subsection C of this section, the department shall deposit all monies and remittances received under this section to the credit of the following specific funds and accounts:

1.  Amounts sufficient to meet the requirements for tax refunds to the tax refund account established by section 42‑1117.

2.  Amounts sufficient to meet the requirements of urban revenue sharing to the urban revenue sharing fund established by section 43‑206.

3.  Amounts collected pursuant to chapter 5, articles 1 and 5 of this title to the transaction privilege and severance tax clearing account established by section 42‑5029.

4.  Amounts sufficient to meet the requirements of section 42‑3104 to the corrections fund.

5.  Amounts sufficient to meet the requirements of section 49‑282, subsection B relating to the water quality assurance revolving fund.

6.  Amounts collected pursuant to, and distributed as provided by, section 43-302 to the housing trust fund established by section 41-3955 and the Arizona finance authority operations fund established by section 41-5352.

6.  7.  All remaining monies to the state general fund.

C.  From the monies and remittances received under this section, each month beginning July 2001 the state treasurer shall transmit to the tourism and sports authority, established by title 5, chapter 8, for deposit in its facility revenue clearing account established by section 5‑834 one‑twelfth of the amount reported by the department pursuant to section 43‑209. END_STATUTE

Sec. 6.  Title 43, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 43-302, to read:

START_STATUTE43-302.  Returns by out-of-state sellers of real property

A.  An individual or corporation described in paragraph 1 or 2 of this subsection shall file a return with the department in a form prescribed by the department pursuant to this section if the only income subject to tax by this state for the taxable year is derived from the sale of real property in this state.  The amount of tax shall be determined pursuant to chapter 10 or 11 of this title, as applicable.  This subsection applies if the taxpayer is either:

1.  An individual and either the tax return required to be filed with the United States secretary of the treasury pursuant to section 6045(e) of the internal revenue code indicates, or the authorization for the disbursement of the monies resulting from the transaction instructs, that the monies be disbursed to a seller, or to an escrow agent of a seller, with a last known address outside the boundaries of this state at the time of the transfer of title.

2.  A corporation that, immediately after the transfer of title to the property in this state, is a foreign corporation that does not qualify by law to transact business in this state and does not maintain and staff a permanent office in this state.

B.  The department shall separately account for monies paid with returns pursuant to this section for deposit pursuant to section 42-1116, subsection B, paragraph 6 as follows:

1.  Seventy percent to the housing trust fund established by section 41-3955.

2.  Thirty percent to the Arizona finance authority operations fund established by section 41-5352. END_STATUTE

Sec. 7.  Effective date

This act is effective from and after December 31, 2018.

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