(1) Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is owned and used by a nonprofit community corrections agency for a community correctional facility or program.
(2) As used in this section:
(a) Community correctional facility or program shall have the meaning set forth in section 17-27-102 (3), C.R.S., for community corrections program.
(b) Nonprofit community corrections agency means any person, agency, corporation, association, or entity that:
(I) Is exempt from federal income tax pursuant to the Internal Revenue Code of 1986, as amended; and
(II) Operates a community correctional facility or program.
(3) The provisions of this section shall apply to property tax years beginning on or after January 1, 1993.
Source: L. 93: Entire section added, p. 614, � 2, effective April 30. L. 95: (2)(a) amended, p. 1108, � 54, effective May 31.
39-3-109. Residential property - integral part of tax-exempt entities - charitable purposes - exemption - limitations. (1) Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is residential and the structure and the land upon which such structure is located are used as an integral part of a church, an eleemosynary hospital, an eleemosynary licensed health-care facility, a school, or an institution whose property is otherwise exempt from taxation pursuant to the provisions of this part 1 and which is not leased or rented at any time to persons other than:
(a) Persons who are attending such school as students; or
(b) Persons who are actually receiving care or treatment from such hospital, licensed health-care facility, or institution for physical or mental disabilities and who, in order to receive such care or treatment, are required to be domiciled within such hospital, licensed health-care facility, or institution, or within affiliated residential units.
(2) Persons residing within residential units specified in paragraph (b) of subsection (1) of this section may submit to the administrator, on a form prescribed by the administrator, a certificate signed by a physician licensed to practice in the state of Colorado that the medical condition of such individual requires the individual to reside in such residential unit. If a person residing within such residential unit submits such signed certificate to the administrator pursuant to the provisions of this subsection (2), the portion of such residential property that is utilized by qualified occupants shall be deemed to be property used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit and such portion, but only such portion, shall be exempt under the provisions of subsection (1) of this section. The determination as to what portion of such structure is so utilized shall be made by the administrator on the basis of the facts existing on the annual assessment date for such property, and the administrator shall have the authority to determine a ratio which reflects the value of the nonexempt portion of such structure in relation to the total value of the whole structure and the land upon which such structure is located and which is identical to the ratio of the number of residential units occupied by nonqualified occupants to the total number of occupied residential units in such structure.
(2.5) No requirement shall be imposed that use of property which is otherwise exempt pursuant to the provisions of this section shall benefit the people of Colorado in order to qualify for said exemption.
(3) Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
Source: L. 89: Entire article R&RE, p. 1472, � 1, effective April 23. L. 90: (2.5) added, p. 1712, � 3, effective June 9. L. 2002: IP(1) amended, p. 1032, � 67, effective June 1.
Editor's note: This section is similar to former � 39-3-101 (1)(g) as it existed prior to 1989.
39-3-110. Property - integral part of child care center - charitable purposes - exemption - limitations. (1) Property, real and personal, that is used solely and exclusively for strictly charitable purposes is exempt from the levy and collection of property tax if such property is used as an integral part of a child care center:
(a) Which is licensed pursuant to part 3 of article 5 of title 26.5;
(b) Which is maintained for the whole or part of a day for the care of five or more children who are not sixteen years of age or older;
(c) Which is not owned or operated for private gain or corporate profit;
(d) The costs of operation of which, including salaries, are reasonable based upon the services and facilities provided and as compared with the costs of operation of any comparable public institution;
(e) Which provides its services to an indefinite number of persons free of charge or at reduced rates equal to five percent of the gross revenues of such child care center or equal to ten percent of the amount of tuition charged by such child care center to the financially needy or charges on the basis of ability to pay;
(f) The operation of which does not materially enhance, directly or indirectly, the private gain of any individual except as reasonable compensation for services rendered or goods furnished; and
(g) The property of which is claimed for exemption does not exceed the amount of property reasonably necessary for the accomplishment of the exempt purpose.
(h) Repealed.
(1.5) (a) No requirement shall be imposed that use of property, which is otherwise exempt pursuant to the provisions of this section, shall benefit the people of Colorado in order to qualify for said exemption.
(b) If a child care center is operated by a person other than the owner of the property, then the other person's use of the property is the sole basis for determining whether the property meets the requirements for the exemption set forth in subsection (1) of this section.
(c) To the extent that real property taxes are shared and payable by one or more tenants under the lease of property that are not the child care center, real property taxes otherwise due but for the application of this section are deemed taxes paid by the property owner or the landlord of a property leased in part to the child care center.
(2) Any exemption claimed pursuant to the provisions of subsection (1) of this section shall comply with the provisions of section 39-2-117.
(3) The provisions of subsection (1) of this section shall not apply to any child care center which is operated for religious purposes and which is exempt from the levy and collection of property tax pursuant to the provisions of section 39-3-106 or 39-3-106.5.
Source: L. 89: Entire article R&RE, p. 1473, � 1, effective April 23; (1)(e) amended and (3) added, p. 1492, � 6, effective June 7. L. 90: (1.5) added, p. 1712, � 4, effective June 9. L. 2022: IP(1) and (1)(a) amended, (HB 22-1295), ch. 123, p. 866, � 125, effective July 1; IP(1), (1)(f), (1)(g), and (1.5) amended and (1)(h) repealed, (HB 22-1006), ch. 289, p. 2066, � 2, effective August 10.
Editor's note: (1) This section is similar to former � 39-3-101 (1)(g) as it existed prior to 1989.
(2) Amendments to subsection IP(1) by HB 22-1066 and HB 22-1295 were harmonized.
Cross references: For the legislative declaration in HB 22-1006, see section 1 of chapter 289, Session Laws of Colorado 2022.
39-3-111. Property - used by fraternal or veterans' organization - charitable purposes - exemption - limitations. Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit, shall be exempt from the levy and collection of property tax if such property is used by any fraternal organization, as defined in section 24-21-602 (18), notwithstanding the requirement that such organization be in existence for a period of five years, or by any veterans' organization, as defined in section 24-21-602 (43), notwithstanding the requirement that such organization be in existence for a period of five years, and the net income derived from the use of such property is irrevocably dedicated to any of the purposes specified in sections 39-3-106 to 39-3-110, 39-3-112, or 39-3-113 and to the purpose of maintaining and operating such organization. As used in this section, the term net income means all items of revenue and gain minus all items of loss and expense, including amounts reasonably anticipated for future needs, as determined according to the usual method of accounting for such organization. No requirement shall be imposed that use of property which is otherwise exempt pursuant to this section shall benefit the people of Colorado in order to qualify for said exemption. Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
Source: L. 89: Entire article R&RE, p. 1473, � 1, effective April 23. L. 90: Entire section amended, p. 1712, � 5, effective June 9. L. 2018: Entire section amended, (HB 18-1375), ch. 274, p. 1725, � 93, effective May 29.
Editor's note: This section is similar to former � 39-3-101 (1)(g) as it existed prior to 1989.
39-3-111.5. Property - health-care services - charitable purposes - exemption - limitations. (1) Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if:
(a) Such property is owned by a nonprofit corporation, whether organized under the laws of this state or of another state;
(b) Such property is occupied or used by one or more physician or dentist, or both, licensed to practice medicine or dentistry, as applicable, under the laws of this state for the purpose of the practice of medicine or dentistry;
(c) Such health-care services are provided to patients who request such services and the financially needy are only charged for such services based upon the ability to pay; and
(d) The board of county commissioners of the county in which such property is located certifies that a need exists for the provision of such health-care services.
(2) The limitations set forth in section 39-3-116 (1) and (2) shall not apply to the use of property pursuant to the provisions of subsection (1) of this section.
(3) Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
Source: L. 91: Entire section added, p. 1956, � 3, effective June 7.
39-3-112. Residential property - orphanage - low-income elderly or individuals with disabilities - homeless or abused - low-income households - charitable purposes - exemption - limitations - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Area median income means the median income of the county in which the property is located in relation to family size, as published annually by the United States department of housing and urban development.
(a.3) Disabled means that an individual is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted for a continuous period of not less than twelve months.
(a.5) Elderly or disabled low-income residential facility means a facility, a portion of which is operated as a residential facility for elderly individuals or individuals with disabilities who meet the requirements of sub-subparagraph (A) of subparagraph (II) of paragraph (a) of subsection (3) of this section, which portion houses only such persons, exclusive of necessary housing facilities for resident managerial personnel, and the rest of which is operated as a health-care facility which is licensed by the state of Colorado.
(b) Family service facility means a facility that is operated as a residential facility for single-parent families; that houses only such families, exclusive of necessary housing facilities for resident managerial personnel; that provides, in addition to housing, counseling in such areas as career development, parenting skills, and financial budgeting; and that is a child care center licensed pursuant to section 26.5-5-309.
(b.3) Low-income household means an individual or family whose total income is no greater than thirty percent of the area median income.
(b.5) Low-income household residential facility means a facility:
(I) That is operated as a residential facility for low-income households;
(II) For which the published rent schedule includes rents that a low-income household can afford by expending no more than thirty percent of the low-income household's total income for rent and utilities; and
(III) For which the owner of the facility has shown that the rent for the facility for which the exemption authorized in subsection (2) of this section applies is lower than the rent for a comparable facility for which said exemption does not apply by an amount equal to at least the value of said exemption.
(c) Transitional housing facility means a facility that:
(I) Is operated as a residential facility for single individuals or families, or both, who are homeless, who have resided within the past six months in a shelter for the homeless, or who have been abused, and whose incomes are as specified in sub-subparagraph (A) of subparagraph (II) of paragraph (a) of subsection (3) of this section;
(II) Has as its purpose to facilitate the achievement of independent living by such individuals and families within a twenty-four-month period; and
(III) Provides counseling in such areas as career development, parenting skills, and financial budgeting, whether at such facility or at another location.
(2) Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is residential and is occupied, owned, and operated in accordance with the requirements set forth in subsection (3) of this section.
(3) In order for property to be exempt from the levy and collection of property tax pursuant to subsection (2) of this section, the administrator must find, pursuant to section 39-2-117, that:
(a) The residential structure is:
(I) Occupied as an orphanage; or
(II) Occupied by:
(A) Single individuals who are sixty-two years of age or older or who are disabled, or a family, the head of which, or whose spouse, is sixty-two years of age or older or is disabled, and whose incomes are within one hundred fifty percent of the limits prescribed for similar individuals or families who occupy low-rent public housing operated by a city or county housing authority which is nearest in distance to such structure; or
(B) Single-parent families whose incomes are as specified in sub-subparagraph (A) of this subparagraph (II) and who occupy a family service facility which is owned and operated by an organization which is exempt from federal income tax pursuant to the provisions of section 501 (c)(3) of the Internal Revenue Code of 1986, as amended; or
(C) Single individuals or families who occupy a transitional housing facility which is owned and operated by an organization which is exempt from federal income tax pursuant to the provisions of section 501 (c)(3) of the Internal Revenue Code of 1986, as amended; or
(D) Low-income households who occupy a low-income household residential facility.
(b) The residential structure is efficiently operated. Efficient operation is determined by the following factors:
(I) That the costs of operation, including salaries, are reasonable based upon the services and facilities provided and as compared with the costs of operation of any comparable public institution;
(II) That such operations do not materially enhance, directly or indirectly, the private gain of any individual except as reasonable compensation for services rendered or goods furnished;
(III) That the property on which the exemption is claimed does not exceed the amount of property reasonably necessary for the accomplishment of the exempt purpose; and
(IV) That the owners and operators of the residential structure have no occupancy requirement that discriminates upon the basis of race, creed, color, religion, sex, sexual orientation, gender identity, gender expression, marital status, national origin, or ancestry; however, if the owner or sponsoring organization is a religious denomination, said owners or operators may give preference to members of that denomination.
(c) The property is owned:
(I) By a nonprofit corporation of which:
(A) No part of the net earnings of such corporation inures to the benefit of any private shareholder; and
(B) Property owned by such corporation is irrevocably dedicated to charitable, religious, or hospital purposes and no portion of its assets will inure to the benefit of any private person upon the liquidation, dissolution, or abandonment of such corporation; or
(II) (A) With respect to residential structures specified in subsections (3)(a)(II)(A), (3)(a)(II)(C), and (3)(a)(II)(D) of this section during any compliance period, as defined by section 42 (i)(1) of the Internal Revenue Code of 1986, as amended, including any extended use period provided under section 42 of the Internal Revenue Code of 1986, as amended, by any domestic or foreign limited partnership of which any nonprofit corporation that satisfies the provisions of subsection (3)(c)(I) of this section is a general partner and that was formed for the purpose of obtaining, and has been allocated, low-income housing credits pursuant to section 42 of the Internal Revenue Code of 1986, as amended.
(B) For property tax years commencing prior to January 1, 2019, this subsection (3)(c)(II) shall not apply if, during such compliance period, such domestic or foreign limited partnership which owns the residential structure distributes income or has income available for distribution to its partners or if the residential structure is sold or otherwise disposed of during such compliance period. If the administrator determines that, as specified in this subsection (3)(c)(II)(B), income has been distributed or has been available for distribution or the residential property has been sold or otherwise disposed of, the administrator shall revoke the property tax exemption for the residential property and property taxes shall be levied and collected against the residential property which would have otherwise been levied and collected from the date on which the exemption was initially granted plus all delinquent interest as provided for by law.
(B.5) For property tax years commencing on or after January 1, 2019, this subsection (3)(c)(II) shall not apply if, during such compliance period, such domestic or foreign limited partnership which owns the residential structure distributes income or has income available for distribution to its partners or if the residential structure is sold or otherwise disposed of during such compliance period. If the administrator determines that, as specified in this subsection (3)(c)(II)(B.5), income has been distributed or has been available for distribution or the residential property has been sold or otherwise disposed of, the administrator shall either revoke the property tax exemption for the residential property as of the date income becomes available for distribution or terminate the exemption as of the date the property is transferred.
(C) The provisions of this subparagraph (II) shall apply to applications for exemption made pursuant to section 39-2-117 which are filed on and after January 1, 1991, or which are pending on said date; or
(III) (A) With respect to residential structures specified in sub-subparagraphs (A), (C), and (D) of subparagraph (II) of paragraph (a) of this subsection (3), by any domestic or foreign limited partnership of which all of the general and limited partners are nonprofit corporations that satisfy the provisions of subparagraph (I) of this paragraph (c).
(B) The provisions of this subparagraph (III) shall apply to applications for exemption made pursuant to section 39-2-117 which are filed on or after January 1, 1993, or which are pending on said date; or
(IV) (A) With respect to elderly or disabled low-income residential facilities or low-income household residential facilities, during any compliance period, as defined by section 42 (i)(1) of the Internal Revenue Code of 1986, as amended, including any extended use period provided under section 42 of the Internal Revenue Code of 1986, as amended, by any domestic or foreign limited partnership so long as each of the general partners of such limited partnership is a for-profit corporation, seventy-five percent or more of the outstanding voting stock of which is owned by, and seventy-five percent or more of the members of the board of directors of which is elected by, one or more nonprofit corporations that satisfy the provisions of subsection (3)(c)(I) of this section and so long as such limited partnership was formed for the purpose of obtaining, and the structure that is owned by such limited partnership has been allocated, low-income housing credits pursuant to section 42 of the Internal Revenue Code of 1986, as amended.
(B) The provisions of this subparagraph (IV) shall not apply if, during any compliance period: Any of the general partners of the domestic or foreign limited partnership which owns the residential structure specified in sub-subparagraph (A) of this subparagraph (IV) cease to meet the requirements specified in sub-subparagraph (A) of this subparagraph (IV); the domestic or foreign limited partnership which owns such residential structure distributes cash or other property to its partners; or such residential structure is sold or otherwise disposed of.
(C) Upon a determination by the administrator that any of the events specified in sub-subparagraph (B) of this subparagraph (IV) have occurred, the administrator shall revoke the property tax exemption for the residential facility specified in sub-subparagraph (A) of this subparagraph (IV), and property taxes shall be levied and collected against such residential facility in the amount which would have otherwise been levied and collected from the date on which such exemption was initially granted, and all delinquent interest provided by law shall apply to such taxes.
(D) The provisions of this subparagraph (IV) shall apply to applications for exemption made pursuant to section 39-2-117 which are filed on or after January 1, 1993, or which are pending on such date.
(4) In the event the occupants of the residential structure include both persons who are qualified pursuant to paragraph (a) of subsection (3) of this section and persons who are not qualified, the portion of such residential structure that is utilized by qualified occupants shall be deemed to be property used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit, and such portion, but only such portion, shall be exempt pursuant to the provisions of subsection (2) of this section. The determination as to what portion of such structure is so utilized shall be made by the administrator on the basis of the facts existing on the annual assessment date for such property, and the administrator shall have the authority to determine a ratio which reflects the value of the nonexempt portion of such structure in relation to the total value of the whole structure and the land upon which such structure is located and which is identical to the ratio of the number of residential units occupied by nonqualified occupants to the total number of occupied residential units in such structure.
(4.5) No requirement shall be imposed that use of property which is otherwise exempt pursuant to the provisions of this section shall benefit the people of Colorado in order to qualify for said exemption.
(5) Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
(6) For purposes of processing applications received for the exemption authorized by subsection (2) of this section for low-income household residential facilities, the department of local affairs shall contract with an independent contractor for the performance of the application processing services in accordance with section 24-50-504, C.R.S. Said contract shall be limited to a term of one year and shall commence when the exemption for low-income household residential facilities first becomes available.
Source: L. 89: Entire article R&RE, p. 1473, � 1, effective April 23. L. 90: (4.5) added, p. 1713, � 6, effective June 9. L. 91: (1)(c) added and (3)(a) and (3)(c) amended, p. 1957, �� 4, 5, effective June 7. L. 92: (3)(c)(II)(B) amended, p. 2223, � 3, effective April 9. L. 93: (1)(a.5), (3)(c)(III), and (3)(c)(IV) added and (3)(c)(II)(C) amended, p. 432, �� 1, 2, effective April 19. L. 95: (1)(c), (3)(c)(II)(A), and (3)(c)(III)(A) amended, p. 1391, � 1, effective June 5. L. 2001: (1)(a), (3)(c)(II)(A), (3)(c)(III)(A), and (3)(c)(IV)(A) amended and (1)(a.3), (1)(b.3), (1)(b.5), (3)(a)(II)(D), and (6) added, pp. 1520, 1521, �� 1, 2, 3, effective August 8. L. 2008: (3)(b)(IV) amended, p. 1604, � 34, effective May 29. L. 2014: (1)(a.5) amended, (SB 14-118), ch. 250, p. 986, � 24, effective August 6. L. 2019: IP(3) and (3)(c)(II)(B) amended and (3)(c)(II)(B.5) added, (HB 19-1319), ch. 200, p. 2164, � 4, effective September 1. L. 2021: IP(3) and (3)(b)(IV) amended, (HB 21-1108), ch. 156, p. 897, � 45, effective September 7. L. 2022: (3)(c)(II)(A) and (3)(c)(IV)(A) amended, (HB 22-1392), ch. 412, p. 2911, � 1, effective June 7; (1)(b) amended, (HB 22-1295), ch. 123, p. 866, � 126, effective July 1.
Editor's note: This section is similar to former � 39-3-101 (1)(g) as it existed prior to 1989.
Cross references: (1) For the legislative declaration contained in the 2008 act amending subsection (3)(b)(IV), see section 1 of chapter 341, Session Laws of Colorado 2008.
(2) For the legislative declaration in HB 19-1319, see section 1 of chapter 200, Session Laws of Colorado 2019.
(3) For the legislative declaration in HB 21-1108, see section 1 of chapter 156, Session Laws of Colorado 2021.
39-3-112.5. Residential property - homeless - charitable purposes - exempt - limitations. (1) Property, real and personal, which is used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is residential, is owned by the United States, and is leased by a department or agency of the United States to any nonprofit organization, whether organized under the laws of this state or of another state, for the purpose of housing single individuals or families, or both, who are homeless.
(2) Any exemption shall be allowed pursuant to subsection (1) of this section only upon the delivery to the administrator of a copy of such lease between the agency of the United States and the nonprofit organization and a copy of the rental agreement between the nonprofit organization and the individuals or families to be housed in such property. Such exemption shall be allowed only for the period of time that such residential property is actually used for said purpose, and such nonprofit organization shall immediately notify the administrator when the use of such residential property has changed.
(3) Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
Source: L. 91: Entire section added, p. 1959, � 6, effective June 7.
39-3-113. Residential property - while being constructed - charitable purposes - exemption - limitations. Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is residential and consists of land and one or more structures which are in the process of being constructed if such property is irrevocably committed to residential use in accordance with the requirements set forth in section 39-3-109 (1) or 39-3-112 (2) and (3). The exemption provided by this section shall terminate on the assessment date subsequent to the issuance of a permit or other authority to occupy such structure or structures. Thereafter, such property shall be subject to the provisions of sections 39-3-109 and 39-3-112. No requirement shall be imposed that use of property which otherwise is exempt pursuant to the provisions of this section shall benefit people of Colorado in order to qualify for said exemption. Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.
Source: L. 89: Entire article R&RE, p. 1475, � 1, effective April 23. L. 90: Entire section amended, p. 1713, � 7, effective June 9.
Editor's note: This section is similar to former � 39-3-101 (1)(g) as it existed prior to 1989.
39-3-113.5. Property acquired by nonprofit housing provider for low-income housing - use for charitable purposes - exemption - limitations - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Area median income means the median income of any county in which property is located in relation to family size, as published annually by the United States department of housing and urban development.
(a.5) Community land trust means a nonprofit organization that is exempt from taxation under section 501 (c)(3) of the federal Internal Revenue Code of 1986, as amended, and is designed to ensure long-term housing affordability through a shared-equity model by acquiring and maintaining ownership of real property, while selling the improvements to low-to-middle income households for use as a primary residence.
(b) Indicators of intent means off-site activities of a nonprofit housing provider that establish the provider's specific intent to:
(I) Use property for the purpose of constructing or rehabilitating housing to be sold to low-income applicants; or
(II) Sell the property to low-income applicants for the purpose of constructing or rehabilitating housing for the low-income applicants.
(b.5) Land lease means a long-term lease used in affordable homeownership properties to lease the real property that is owned by a community land trust or nonprofit affordable homeownership developer to the owner of the improvements on the real property and preserve the improvements as an affordable homeownership property.
(c) Low-income applicant means:
(I) For property tax years commencing before January 1, 2024, an individual or family whose total income is no greater than eighty percent of the area median income and who applies to a nonprofit housing provider to assist in the construction and purchase of housing to be constructed by the provider; and
(II) For property tax years commencing on or after January 1, 2024, an individual or family who both apply to a nonprofit housing provider to purchase an affordable for-sale unit and whose total income is at or below either:
(A) One hundred percent of the area median income of households of the same size in the county in which the housing is located; or
(B) One hundred twenty percent of the area median income of households of the same size in the county in which the housing is located, if the individual or family resides in a county classified as a rural resort community by the division of housing pursuant to section 29-4-1107 (1)(d).
(d) Nonprofit housing provider means an organization that is exempt from federal income tax pursuant to section 501 (c)(3) of the federal Internal Revenue Code of 1986, as amended, and that has a primary organizational mission of:
(I) Working with low-income applicants to construct or rehabilitate housing that the organization then sells to the low-income applicants for their residential use; or
(II) Selling property or improvements to low-income applicants for the low-income applicants' residential use.
(2) (a) Subject to the limitations specified in subsection (3) of this section, for property tax years commencing on or after January 1, 2011, real property acquired by a nonprofit housing provider upon which the provider intends to construct or rehabilitate housing to be sold to low-income applicants or which the provider intends to sell to low-income applicants for their residential use is deemed to be being used for strictly charitable purposes, regardless of whether or not there is actual physical use of the property, and shall be exempt from property taxation in accordance with section 5 of article X of the state constitution.
(b) (I) For property tax years commencing on or after January 1, 2024, the property tax exemption described in this section applies from when the nonprofit housing provider claims the exemption, through construction, rehabilitation, or improvement of the property, until the provider sells, transfers, donates, or leases the property.
(II) If property is sold by a nonprofit housing provider to a low-income applicant, the property may qualify for the property tax exemption described in this section until a certificate of occupancy is issued for the property; except that property may not qualify for the property tax exemption described in this section more than one year after the provider sells the property to the low-income applicant.
(c) (I) For property tax years commencing on or after January 1, 2011, but before January 1, 2024, in determining whether a nonprofit housing provider satisfies the intent requirement of subsection (2)(a) of this section with respect to particular property, the administrator may consider indicators of intent, including but not limited to:
(A) The establishment by the nonprofit housing provider of a committee or other structure for the purpose of planning the construction or rehabilitation of housing on the property;
(B) Steps taken by the nonprofit housing provider to obtain any required local government approvals for the construction or rehabilitation of housing on the property;
(C) Steps taken by the nonprofit housing provider to develop and implement a financing plan for the construction or rehabilitation of housing on the property;
(D) The hiring of architects, contractors, or other professionals by the nonprofit housing provider in preparation for the actual construction or rehabilitation of housing on the property; and
(E) The solicitation or acceptance by the nonprofit housing provider of applications from low-income applicants for housing to be constructed or rehabilitated on the property.
(II) For property tax years commencing on or after January 1, 2024, in determining whether a nonprofit housing provider satisfies the intent requirement of subsection (2)(a) of this section with respect to particular property, the administrator may consider indicators of intent, including but not limited to:
(A) A land donation agreement between the landowner and the nonprofit housing provider that outlines the purpose of the property donation;
(B) A resolution by the nonprofit housing provider's board that designates the property for construction or rehabilitation of for-sale affordable housing; or
(C) A resolution by the nonprofit housing provider's board that approves the purchase of the property for land banking with the purpose of constructing or rehabilitating for-sale affordable housing.
(3) (a) For property tax years commencing on or after January 1, 2011, but before January 1, 2024, the property tax exemption described in this section is subject to the following limitations:
(I) The exemption may be allowed for a maximum of five consecutive property tax years, beginning with the property tax year in which the nonprofit housing provider obtained title to the property; and
(II) If the nonprofit housing provider is allowed an exemption for any property tax year and subsequently sells, donates, or leases the property to any person other than a low-income applicant who assisted or will assist in the construction of housing for the applicant's residential use on the property, the provider shall be liable for all property taxes that the provider did not previously pay due to the exemption.
(b) For property tax years commencing on or after January 1, 2024, the property tax exemption described in this section is subject to the following limitations:
(I) For nonprofit housing providers who have not previously claimed the property tax exemption, the exemption may be allowed for a maximum of ten consecutive property tax years, beginning with the property tax year in which the nonprofit housing provider claimed the exemption;
(II) For nonprofit housing providers who have previously claimed the property tax exemption, the exemption may be allowed for a maximum of five consecutive property tax years, in addition to the five-year period described in subsection (3)(a)(I) of this section; and
(III) The nonprofit housing provider is liable for all property taxes that the provider did not previously pay due to the exemption if the provider sells, donates, or leases the property to anyone other than:
(A) A low-income applicant who purchased the property; or
(B) A community land trust or nonprofit housing provider intending to sell the improvements on the property to a low-income applicant and lease the underlying land to the low-income applicant through a land lease.
Source: L. 2011: Entire section added, (HB 11-1241), ch. 248, p. 1082, � 1, effective August 10. L. 2013: (1)(b), (1)(c), (1)(d), IP(2), and (3)(b) amended, (HB 13-1246), ch. 203, p. 845, � 1, effective August 7. L. 2023: (1)(a.5) and (1)(b.5) added and (1)(c), (1)(d)(II), (2), and (3) amended (HB 23-1184), ch. 260, p. 1502, � 2, effective August 7.