A state House committee voted Tuesday to close what supporters call an affordable housing tax loophole that has created budget problems for urban counties.
Rep. Erin Paré said real estate investors are exploiting a property tax exemption intended to help nonprofits build and operate affordable housing.
Paré’s bill would create new definitions for affordable housing and nonprofit ownership, with the goal of preventing for-profit investors from using the exemption.
In a separate vote, the House Finance Committee approved a proposal to place a constitutional amendment on property taxes on the November ballot.
The amendment would restrict increases in local property tax rates. Critics say the limits could reduce funding for schools and other local services.