This chapter authorizes property tax exemptions for construction of new residential units, provided a minimum of eight new residential units, to include no more than one unit for owner-occupancy, are constructed and the construction increases the total number of residential units on property.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)
A. 
Exclusions: The following types of properties are not eligible for this housing tax incentive:
1. 
Deteriorated property; economic-development property. Deteriorated property as defined in AMC Section 12.35.005 and economic development property for which an application has been filed and is under review, or has been granted pursuant to AMC Section 12.35.040 or AMC Section 12.35.050 are not eligible for this housing tax incentive. Submission of an application for exemption pursuant to this chapter shall automatically terminate any existing deteriorated property or economic development property application or designation for the subject property. This does not render ineligible a property located within a "deteriorated area" as defined under section 12.35.005, if no application is filed or under review or exemption granted for the property.
2. 
Short-term rental property. Properties with an initial rental term for a period of less than 30 days. Any portion of a property for which the initial rental term is less than 30 days is not eligible for this housing tax incentive. Rental of a portion of a property for an initial term of less than 30 days shall automatically terminate an application for or previously granted exemption under this chapter.
3. 
Owner-occupied residential property. Any owner-occupied portion of the newly constructed residential units, in excess of one residential unit, is not eligible for this housing tax incentive.
B. 
Requirements: Qualifying new residential units must be built in compliance with state and federal wage and labor standards and worker safety standards.
1. 
All work performed to construct the new residential units described in the application must be in compliance with state and federal wage and labor standards and worker safety standards.
2. 
Violations of the requirements of subsection B.1 of this section may be subject to penalty under AMC Chapter 1.60 including three times the value of exemption received.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025)
A. 
Submission. An application for an exemption under this chapter shall be made in writing to the municipal assessor.
B. 
Timeline for submission. Applications must be submitted prior to issuance of the conditional certificate of occupancy for the newly constructed units. Applications made after issuance of the conditional certificate of occupancy for the newly constructed units shall be rejected.
C. 
Contents. The application shall, at a minimum, contain:
1. 
Name. The name of the applicant;
2. 
Address. The legal description and street address of the property for which the application is made;
3. 
New residential units. Drawings of the residential units that the applicant will construct, including a floor plan that includes approximate square footages;
4. 
Existing structures. Drawings showing the square footage of all existing structures and structures to be constructed on the property;
5. 
Increase in residential units. Plans showing the project will increase the total number of residential units on the property;
6. 
Acknowledgement of liability. Applicant acknowledges that the residential units will be taxable if and when the residential units are no longer eligible for tax exemption under this chapter;
7. 
Labor compliance. Applicant acknowledges that the residential units must be built in compliance with state and federal wage and labor standards and worker safety standards;
8. 
If the applicant is seeking additional duration under AMC Section 12.60.045B, the application shall include:
a. 
A detailed description of how the property qualifies for the additional duration(s) including sufficient information to support such qualification; and
b. 
An acknowledgment that the additional duration may not be approved or may be subsequently removed if certain criteria are not met during the base 20 years or during the additional duration; and
9. 
Other information. Other information as may be required by the assessor. Other information may include detailed financial records regarding the design and construction of the residential units.
D. 
Deadline for applications. Applications for an exemption under this chapter shall only be accepted before 5:00 p.m. February 28, 2050.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)
A. 
The municipal assessor shall provisionally approve an application for tax exemption if:
1. 
Complete application. The applicant submitted a complete application; and
2. 
Eight or more units. The applicant acknowledges it must: (a) construct not less than eight new residential units in accordance with the plans and drawings submitted with its application or with modifications required for approval by permit or plan review procedures under chapters 21.03 or 23.10.104, and (b) increase the total number of residential units on the property in order to receive final approval under AMC section 12.60.040.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)
A. 
Final approval of exemption. The municipal assessor shall finally approve an application for tax exemption if:
1. 
The applicant has completed construction of residential units substantially in accordance with the plans and drawings included in the provisional approval and a Certificate of Occupancy has been issued pursuant to AMC Section 23.10.107.4 for each structure that contains a residential unit described in the application;
2. 
The total number of residential units on the property has increased by at least the number required by this chapter; and
3. 
The applicant submits an affidavit that construction of the residential units was in compliance with State and Federal wage and labor standards and worker safety standards.
B. 
Magnitude of exemption. The taxes eligible for exemption under this AMC Chapter 12.60 are those exempt to the extent of state statute and attributable only to:
1. 
The newly constructed residential units, exclusive of previously existing or non-eligible residential units (whether or not remodeled) determined on a spatial basis as follows: The square footage of the newly constructed, eligible residential units shall be divided by the square footage of all structures on the property, then multiplied by the assessed value of all improvements on the property and by the mill rate applicable to the property. If an exemption is granted, it shall apply to all of the eligible property taxes attributable to newly constructed, eligible residential units.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)
A. 
Base duration of tax exemption. Tax exemptions approved under section 12.60.040 shall be for a base period of 20 consecutive years beginning on January 1 of the first full calendar year after final approval of the application.
B. 
Additional duration. Additional consecutive years of tax exemptions may be granted to property meeting conditions defined below to the extent defined as follows:
1. 
Geographic location. Property at least partially within the following areas shall be granted an additional five years of exemption upon final approval; provided: a property may only qualify for one additional term based upon geographic location under this subsection:
a. 
Residential housing tax incentive area,
b. 
Deteriorated areas as defined in AMC Section 12.35.005,
c. 
Qualified opportunity zones designated by the Internal Revenue Service,
2. 
Mixed-use. Property qualifying as mixed-use under title 21 may be granted an additional three years of exemption upon application,
3. 
Housing affordability. Property where at least 20 percent of units are offered for rent at no more than 120 percent of Fair Market Rent as such term is used in 24 Code of Federal Regulations § 888.113, may be granted an additional three years of exemption upon application.
4. 
Apprenticeship utilization and prevailing wages. Property constructed using apprentice utilization and prevailing wages, as defined in section 12.60.080, may be granted an additional five years of exemption upon application.
5. 
Parking area conversion. Property that converts surface parking lot or parking structure principal uses, as defined in AMC Section 21.05.050I, or off-street parking area accessory uses, to residential housing units shall be granted an additional three years of exemption.
C. 
Maximum duration. No property may be granted more than 28 total years of exemption under this chapter.
(AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)
A. 
Loss of residential units. If previously eligible residential units on the property become ineligible, an exemption granted under this chapter shall terminate immediately as applied to the units which are no longer eligible.
B. 
Less the minimum number of residential units. An exemption granted under this chapter shall terminate entirely immediately if and when the number of eligible residential units on the property is less than eight.
C. 
Verified unfair labor practices. An exemption granted under this chapter shall terminate entirely immediately if and when a state or federal court or administrative agency determines, in a final unappealable decision, that violations regarding unfair wage practices or unsafe working conditions occurred during the construction of the eligible residential units.
D. 
Failure to file annual report. An exemption granted under this chapter shall automatically terminate if the owner of the property fails to comply with the annual report for three consecutive years.
E. 
Transfer on change of ownership. An exemption shall run with the land and transfer, in whole only, to another entity or owner when the ownership of the property is transferred, however the municipality will not prorate the exemption for a partial calendar year.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025)
A. 
Of assessor to chief fiscal officer. Any decision of the assessor under this chapter may be appealed to the chief fiscal officer or the chief fiscal officer's designee in writing within 30 days of the date the decision was issued. For the purposes of this chapter the date of issuance is the date upon which the decision was mailed or otherwise delivered to the parties.
B. 
Of chief fiscal officer to the office of administrative hearings. Any decision of the chief fiscal officer or the chief fiscal officer's designee under this chapter may be appealed to an administrative hearings officer in accordance with AMC Chapter 3.60 within 30 days of the date the decision was issued. For the purposes of this chapter the date of issuance is the date upon which the decision was mailed or otherwise delivered to the parties.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025)
A. 
Annual compliance and status report. Not later than March 15 of each year, the owner of the property for which an exemption has been granted, shall file with the assessor, a report including:
1. 
Occupancy. A statement of occupancy and vacancy of the residential units for the prior 12 months;
2. 
Residential units remain as described. A certification that the newly constructed residential units described in the application continue to exist and have not been converted to a non-residential use and continue to continue to comply with the requirements of this chapter;
3. 
Further changes. A description of physical changes or other improvements constructed since the last report or, on first report, since the filing of the application;
4. 
Additional duration. If applicable, documentation supporting any additional duration granted upon final approval under AMC Section 12.60.045B; and
5. 
Additional information. Any additional information requested by the assessor, chief fiscal officer, or designee. Additional information may include detailed financial records regarding the design, construction, and operation of the residential units.
B. 
Annual reports to the assembly. The assessor shall transmit annual reports to the assembly in an assembly information memorandum that contains:
1. 
Annual reports of property owners. Copies of annual compliance and status reports submitted by property owners in accordance with AMC Section 12.60.070A.
2. 
Annual report of exempted taxes. A summary of the total taxes exempted for each property that has been granted a tax exemption under this chapter.
3. 
Annual report of applications and status. A summary list of each application for an exemption under this chapter received by the assessor, the status (rejected, provisional approval, or final approval), number of units proposed, under construction and completed, and the parcel address or description of location.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025)
At the request of the applicant or owner, financial information and records submitted with the application or annual reports, and other information in which the applicant or owner has a reasonable expectation of privacy and nondisclosure, shall be confidential and may not be released except upon court order, when necessary to enforce the provisions of or to collect the taxes due to the municipality and reviewed only by the municipal assessor, and not disclosed except to the municipal attorney, chief fiscal officer, the internal auditor, or administrative hearing officer in the performance of their official duties.
(AO No. 2025-35(S-1), § 1, 4-22-2025)
In this chapter:
"Apprenticeship utilization (AU)"
means the Developer will ensure that any contractor or subcontractor who employs four or more individuals for the construction of a project shall demonstrate a verifiable commitment to collaborating with federally recognized apprenticeship programs within the area. These contractors and subcontractors are expected to maintain a ratio of three journeymen to one apprentice for ten percent of total work hours.
"Construction"
has the same meaning set forth in AMC Section 21.15.040.
"Initial rental term"
means the first contractual lease term entered into between landlord and tenant unique to each unit rented and each tenant.
"Prevailing wage (PW)"
means the prevailing per diem wage rate corresponding to a specific labor classification. This rate is to be determined by the director of public works, based on the prevailing wage determinations as outlined in the Laborers' and Mechanics' Minimum Rates of Pay, per Alaska Administrative Code, 8 AAC 30.050 and AS 36.05.010.
"Qualified opportunity zone"
means properties located within the boundaries of a population census tract that is a low-income community designated as a qualified opportunity zone by the United States Internal Revenue Service under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97). Qualified opportunity zones located within the Municipality of Anchorage are depicted below.
"Residential housing tax incentive area"
means properties located within the boundaries of the residential tax incentive area as depicted below. This includes properties located generally within the Downtown Planning Area, the Midtown District Planning Area, and Transit-supportive development corridors.
"Residential unit"
means a dwelling unit as defined in AMC Section 21.15.040 which is either owner-occupied or leased or rented to the same person or persons for 30 or more consecutive days. As used in this definition "person" means only natural persons.
(AO No. 2019-12, § 1, 3-5-2019; AO No. 2025-35(S-1), § 1, 4-22-2025; AO No. 2025-84(S), § 1, 8-12-2025)