SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local Taxes" is hereby amended by adding thereto the following section:

44-5-77. Cooperative housing corporation property exemption -- Providence. -- Notwithstanding any other provision of the general or public laws to the contrary, the property taxes owed for any real property in Providence owned by an entity organized as a cooperative housing corporation within the meaning of chapter 6.1 of title 7 shall be reduced by applying to the assessed value of such property all personal exemptions (including, for example, the homestead exemption and exemptions available to veterans, disabled veterans, elderly persons, former prisoners of war, and the blind) to which any shareholders of such corporation residing on such property would be entitled if they directly owned and occupied residential property in the city or town where the corporation's property is located. In calculating the amount of any such property tax reduction, the personal exemptions to which any resident shareholder is entitled shall not be applied to the portion of the common areas on the corporation's property used for recreational or social purposes, such as game rooms, fitness facilities, dining rooms or theaters. The burden shall be on the corporation to demonstrate the extent to which any of its resident shareholders would qualify to receive such exemptions.

SECTION 2. This act shall take effect on December 31, 2001.