C.R.S. Section 39-3-127.7
Community land trust property

  • nonprofit affordable homeownership developer property
  • exemption
  • requirements
  • legislative declaration
  • definitions

(1)

Intentionally left blank —Ed.

(a)

The general assembly hereby finds and declares that:

(I)

The cost of homeownership has risen dramatically in Colorado: From December 2020 to December 2022, the median home value in Colorado increased over thirty percent;

(II)

Entry-level homeownership options are increasingly unavailable, and community land trusts and nonprofit affordable homeownership developers are playing an increasingly large role in helping low- and middle-income Coloradans access homeownership; and

(III)

Compared to tools used to incentivize affordable rental housing, such as the low-income housing tax credit, there are fewer tools to incentivize the creation of affordable for-sale housing.

(b)

Therefore, it is the intent of the general assembly to provide a limited property tax exemption to community land trusts and nonprofit affordable homeownership developers in certain circumstances.

(2)

As used in this section, unless the context otherwise requires:

(a)

“Affordable homeownership property” means any dwelling that:

(I)

Is restricted by a deed that impacts ownership of the property, limits the property’s resale price, requires a long-term land lease with a community land trust or nonprofit affordable homeownership developer, or imposes any other restriction that limits the property such that it may only be purchased by designated households, a community land trust, or a nonprofit affordable homeownership developer;

(II)

Is sold to a household that at the time of purchase is at or below one hundred percent of the area median income of households of that same size in the county in which the housing is located; and

(III)

Is sold to a purchaser to be used as a primary residence.

(b)

“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.

(c)

“Improvement” means a permanent change to real property that augments the real property’s value including but not limited to a single-family home, townhome, or condominium.

(d)

“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.

(e)

“Nonprofit affordable homeownership developer” 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 providing for-sale affordable housing units to low-to-middle income households for use as a primary residence.

(3)

Intentionally left blank —Ed.

(a)

For property tax years commencing on or after January 1, 2024, real property is deemed to be used for a strictly charitable purpose, and is exempt from property taxation in accordance with section 5 of article X of the state constitution, if the real property:

(I)

Is held by either a community land trust or a nonprofit affordable homeownership developer;

(II)

Has been split into a separate taxable parcel from the improvements; and

(III)

Is leased to the owner of the improvements as an affordable homeownership property.

(b)

The real property described in subsection (3)(a) of this section is deemed to be used for a strictly charitable purpose, and is exempt from property taxation in accordance with section 5 of article X of the state constitution, until the real property is no longer used as an affordable homeownership property.

(4)

If a community land trust or nonprofit affordable homeownership developer claims a property tax exemption pursuant to this section for a real property and then subsequently sells, donates, or leases that real property so that the real property no longer qualifies as an affordable homeownership property, the community land trust or nonprofit affordable homeownership developer is liable for all property taxes for the real property for the property tax years when the real property did not qualify as an affordable homeownership property and during which the community land trust or nonprofit affordable homeownership developer did not pay property taxes for the real property due to the property tax exemption described in this section.

(5)

Improvements on real property that qualifies for the property tax exemption described in this section are not exempt from property taxation.

(6)

A community land trust or nonprofit affordable home ownership developer that owns real property that qualifies for the property tax exemption described in this section shall submit the land lease for each real property that qualifies for the property tax exemption described in this section to the appropriate county assessor within twenty-five days of the initial execution of the land lease.

(7)

Any community land trust or nonprofit affordable homeownership developer that claims a property tax exemption pursuant to this section shall comply with the provisions of section 39-2-117.

Source: Section 39-3-127.7 — Community land trust property - nonprofit affordable homeownership developer property - exemption - requirements - legislative declaration - 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

§ 39-3-127.7’s source at colorado​.gov