Development of Fewer than Twenty-five (25) Affordable Housing Units

(a)A rebate of up to one hundred percent (100%) of all income tax paid to the government of Guam by a Beneficiary on income received from the construction of affordable housing in Guam may be issued for a period not to exceed twenty

(20)consecutive years from the effective date of a Qualifying Certificate. The Beneficiary may be a developer, contractor, or subcontractor, or a combination of two

(2)or more thereof so long as all the income the subject of the rebate is from, is derived from the construction of not less than five

(5)but fewer than twenty-five

(25)affordable housing units. Additionally, the Beneficiary is authorized to claim up to one hundred percent (100%) in use tax exemptions with respect to constructing, furnishing, and equipping each new affordable housing unit. The exemption shall be claimed no later than one

(1)year from the issuance of each affordable housing unit’s occupancy permit. “Affordable” where used in this Section shall be up to one hundred thirty percent (130%) and less of the median income average threshold as published annually by the U.S. Department of Agriculture. The income threshold established herein may be adjusted by the Guam Housing Corporation in consultation with GEDA from time-to-time through an approved board resolution consistent with recommendations from the Guam Housing and Urban Renewal Authority and/or federal agencies, including, but not limited to, the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture. CH. 58 QUALIFYING CERTIFICATES

(b)The Guam Economic Development Authority in consultation with the Guam Housing Corporation shall have the sole authority to negotiate the terms of the tax incentives authorized by this Section and other provisions of Chapter 58, Title 12, Guam Code Annotated, which are applicable to the development of affordable housing. The provisions of this Section shall be treated independent of the affordable housing tax benefits previously authorized by Public Law 23-135 for the development of no less than twenty-five

(25)affordable housing units. Negotiations shall be completed prior to the issuance of the affordable housing unit’s building permit.

(c)Notwithstanding any other provision of law, the Beneficiary’s business privilege tax

(BPT)payments connected to the construction of affordable housing units pursuant to this Section shall be deposited into the Affordable Housing Assistance Fund as established herein. The BPT payments authorized herein shall not affect the levy of three percentage points (3%) out of the total percentage points levied from time to time, of the BPT (the Pledged Privilege Tax Revenues), the revenues from which are pledged to the government of Guam Business Privilege Tax Bonds (the BPT Bonds); provided, that payments made be made from the Pledged Privilege Bonds in accordance with Section 5.02(E) of the Indenture, dated as of December 1, 2011, as amended from time to time, relating to the Bonds (the BPT Bond Indenture), and in a manner otherwise consistent with the BPT Indenture. The “Affordable Housing Assistance Fund” shall be used as a revolving funding source to assist first-time borrowers with down payments and other closing costs. Borrowers must supply the Guam Housing Corporation with written documentation evidencing loan approval by a financial institution licensed to operate on Guam. Each qualified borrower shall be eligible to receive no more than an amount equal to the total BPT value paid by the beneficiary for the construction of affordable housing units. The Guam Housing Corporation in consultation with GEDA shall develop an application process and the appropriate rules and guidelines necessary to facilitate BPT deposits and financial assistance for down payment and other closing costs for qualified first-time home borrowers who shall be prohibited from receiving benefits from more than one

(1)affordable housing assistance program administered by the government of Guam. Each payment shall be made to a financial institution through escrow and only after the borrower has met all eligibility requirements established by the Guam Housing Corporation.

(d)There is hereby created, separate and apart from all other funds, the Affordable Housing Assistance Fund

(Fund)which shall be administered by the Guam Housing Corporation. The deposits into the Fund shall not be commingled with any other funds of the Guam Housing Corporation and any other appropriations made to the agency, and shall be kept in a separate bank account. The Fund shall be audited annually and the Guam Housing Corporation is required to prepare and submit an annual report to I Maga’hågan/Maga’låhen Guåhan and the Speaker of I Liheslaturan Guåhan concerning the administration and activities of the Fund.