Monday, March 5, 2012

Board Finds Low Income Housing Provider Raised a Prima Facie Case for Exemption

"24. Unlike the property at issue in Jamestown Homes, the Petitioner here does not provide its low income tenants housing as part of a contractual agreement or as a condition precedent to receiving federal funds. Moreover, the Petitioner does more than simply provide housing to low income families. It also provides social services and fosters an atmosphere of fraternity and good fellowship.

25. First, the Petitioner’s evidence raises a prima facie case that the Petitioner leased the apartments at Woodhaven Park for less than fair market rent. The Petitioner showed that its rent rates were below the rent levels established by the Indiana Housing Development Authority and the market rents used by HUD. Petitioner Exhibit K, L and W. Similarly, except for a single property which was offering a “rent special” on its one bedroom apartments, three rent studies and an USPAP-compliant appraisal found that Woodhaven Park’s rent levels for its one bedroom apartments and two bedroom and three bedroom townhomes fell below the rates charged by other apartment complexes in the area. See Petitioner Exhibits O through Q and V.

26. The Petitioner also raised a prima facie case that it provided charitable benefits and services to its residents, in addition to providing affordable housing. Here, the Petitioner did more than simply refer its tenants to social services, it arranged to have organizations come to the site and provide services to its residents such as a credit counseling program, personal and family counseling, and a summer lunch program. Similarly, while the Petitioner did not provide its own tax preparation services, it offered a rent credit to its residents to obtain tax preparation assistance. Further, the Petitioner offered its own programs to improve the situations of its tenants, such as resume assistance, financial planning, a language learning program and a student tutoring program – in addition to community activities such as a New Year’s Eve celebration and a Valentine’s Day party. The Petitioner also offered rent and utility assistance by offering payment options and forbearance plans in case of tenant hardship. Finally, the Petitioner applied for grants, such as a grant from Microsoft which donated computers and sixty software licenses and a Book Club for Kids grant which gave the Petitioner the opportunity to buy books at a reduced cost which the Petitioner then gave for free to its residents. The undisputed evidence showed that offering such programs came at a significant cost to the Petitioner. See Petitioner Exhibit S at p. 5 through 6. In fact, the Petitioner’s witness testified that its management company hired an extra employee to assist with these particular programs. Cane testimony.

27. In addition, by repaving the city street that Woodhaven Park shared with the single-family homes across the street, the Petitioner relieved the government of the burden to maintain that street.

28. The Board therefore finds that the Petitioner raised a prima facie case its property was predominantly owned, occupied and used for charitable purposes and qualifies for 100% exemption for the 2008 assessment year."