To further encourage affordable housing in urban centers. The bill clarifies what constitutes affordable housing. The bill also redefines the eligibility requirements for cities from populations of 30,000 to populations of 15,000.   Official Text and Analysis.

To clarify some of the definitions ins the original bill. The substitute bill also allows rental units in high cost areas to be rented to households whose income is less than 100% of median family income for that county. Cities may enter into an agreement with the owner of a property seeking the tax exemption, where the owner agrees to provide an equivalent number of comparable low-income qualified affordable rental or owner occupancy units in a location other than the specific project seeking the tax exemption, within a specified time not to exceed five years, with the same residential targeted area or another designated area established by a city.