C.R.S. Section 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)

Intentionally left blank —Ed.

(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)

Intentionally left blank —Ed.

(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)

Intentionally left blank —Ed.

(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)

Intentionally left blank —Ed.

(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: Section 39-3-113.5 — Property acquired by nonprofit housing provider for low-income housing - use for charitable purposes - exemption - limitations - definitions, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-39.­pdf (accessed Oct. 20, 2023).

39‑3‑101
Legislative declaration - presumption of charitable purpose 39‑3‑102
Household furnishings - exemption 39‑3‑103
Personal effects - exemption 39‑3‑104
Ditches, canals, and flumes - exemption 39‑3‑105
Public libraries - governments - school districts - exemption 39‑3‑106
Property - religious purposes - exemption - legislative declaration 39‑3‑106.5
Tax-exempt property - incidental use - exemption - limitations 39‑3‑107
Property - not-for-profit schools - exemption 39‑3‑108
Property - nonresidential - health-care facility - water company - charitable purposes - exemption - limitations 39‑3‑108.5
Property - community corrections facility - exemption 39‑3‑109
Residential property - integral part of tax-exempt entities - charitable purposes - exemption - limitations 39‑3‑110
Property - integral part of child care center - charitable purposes - exemption - limitations 39‑3‑111
Property - used by fraternal or veterans’ organization - charitable purposes - exemption - limitations 39‑3‑111.5
Property - health-care services - charitable purposes - exemption - limitations 39‑3‑112
Residential property - orphanage - low-income elderly or individuals with disabilities - homeless or abused - low-income households - charitable purposes - exemption - limitations - definitions 39‑3‑112.5
Residential property - homeless - charitable purposes - exempt - limitations 39‑3‑113
Residential property - while being constructed - charitable purposes - exemption - limitations 39‑3‑113.5
Property acquired by nonprofit housing provider for low-income housing - use for charitable purposes - exemption - limitations - definitions 39‑3‑114
Burden - claim for charitable exemption 39‑3‑115
Statutes not applicable 39‑3‑116
Combination use of property - charitable, religious, and educational purposes - exemption - limitations 39‑3‑117
Cemeteries - not-for-profit - exemption 39‑3‑118
Intangible personal property - exemption 39‑3‑118.5
Business personal property - exemption - exemption authority for local governments 39‑3‑118.7
Community solar garden - partial business personal property tax exemption - definitions 39‑3‑119
Inventories - materials and supplies - held for consumption or primarily for sale - exemption 39‑3‑119.5
Personal property - exemption - reimbursement to local governments - legislative declaration - definitions 39‑3‑120
Livestock - exemption 39‑3‑121
Agricultural and livestock products - exemption 39‑3‑122
Agricultural equipment used in production of agricultural products - CEA facilities - exemption - definition 39‑3‑123
Works of art, literary materials, and artifacts - on loan - exemption - limitations - definitions 39‑3‑124
Property used by state entity - installment sales or lease agreement - financed purchase of an asset, certificate of participation, or leveraged lease agreement - exemption 39‑3‑126
Horticultural improvements - exemption - limitation - exception 39‑3‑126.5
Mobile homes - low-value - exemption - legislative declaration - definition 39‑3‑127
County fair property - exemption - limitation 39‑3‑127.5
Qualifying business entities - participation in federal tax credit transactions - exemption - requirements - definitions 39‑3‑127.7
Community land trust property - nonprofit affordable homeownership developer property - exemption - requirements - legislative declaration - definitions 39‑3‑128
Exempt property listed and valued 39‑3‑129
Proportional valuation - exempt property 39‑3‑130
Change in tax status of property - effective date - tax liability 39‑3‑131
Entire property becomes tax-exempt 39‑3‑132
Portion of property becomes tax-exempt 39‑3‑133
Payment of property taxes extinguishes lien 39‑3‑134
Condemnation by tax-exempt agency - duties of treasurer 39‑3‑137
Organizations with tax-exempt status - forgiveness of taxes owed 39‑3‑138
EV supply equipment - exemption 39‑3‑201
Legislative declaration 39‑3‑202
Definitions 39‑3‑203
Property tax exemption - qualifications 39‑3‑204
Notice of property tax exemption 39‑3‑205
Exemption applications - penalty for providing false information - confidentiality 39‑3‑206
Notice to individuals returning incomplete or nonqualifying exemption applications - denial of exemption - administrative remedies 39‑3‑207
Reporting of exemptions - reimbursement to local governmental entities 39‑3‑208
Auditing of property tax exemption program 39‑3‑209
State expenditure for property tax exemptions - mechanism for refunding of excess state revenue - legislative declaration 39‑3‑210
Reporting of property tax revenue reductions - reimbursement of local governmental entities - definitions - local government backfill cash fund - creation - repeal
Green check means up to date. Up to date

Current through Fall 2024

§ 39-3-113.5’s source at colorado​.gov