us-co/statute/39/39-3-127.7 — Community land trust property - nonprofit affordable homeownership developer property - exemption - requirements - legislative declaration

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us-co/statute/39/39-3-127.7 — Community land trust property - nonprofit affordable homeownership developer property - exemption - requirements - legislative declaration - definitions · Axiom

(1) (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…∀ 1#

(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…∀ 1#

(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…∀ 1#

graph ↗use in builder ↗

(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…∀ 1#

(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) (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) (a) 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; except that, if the real property that is allowed an exemption pursuant to this section has been subdivided, the owner of such property or the owner's agent is only required to:

(I) Submit one application for the exemption for all parcels in connection with the subdivision pursuant to section 39-2-117 (1)(a), but the filing must be accompanied by a payment in accordance with section 39-2-117 (1)(a)(I) in an amount not to exceed the aggregate amount of payments that would be required if individual applications were filed for each parcel; and

(II) If the exemption is granted, file one annual report pursuant to section 39-2-117 (3)(a) for all parcels in connection with the subdivision, but the filing must be accompanied by a payment in accordance with section 39-2-117 (3)(a) in an amount not to exceed the aggregate amount of payments that would be required if individual reports were filed for each parcel.

(b) Notwithstanding subsection (7)(a)(II) of this section, if the real property that is allowed an exemption pursuant to this section has been subdivided but the subdivided parcel has been split into a separate taxable parcel from the improvements and is leased to the owner of the improvements as an affordable homeownership property, then the owner of such real property or the owner's agent must file an individual annual report for the subdivided parcel in accordance with section 39-2-117 (3)(a).

in view

Whole section

Encodings · 9

affordable_homeownership_income_limitCO 39 § 39-3-127.7 (a) · parameter

39-3-127.7(a)

name: affordable_homeownership_income_limit
kind: parameter
dtype: Rate
source: 39-3-127.7(a)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: at or below one hundred percent of the area median income
versions:
  - effective_from: '2024-01-01'
    formula: '1.0'

affordable_homeownership_propertyCO 39 § 39-3-127.7 (a) · derived

39-3-127.7(a)

name: affordable_homeownership_property
kind: derived
entity: Asset
dtype: Judgment
period: Year
source: 39-3-127.7(a)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: definition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
versions:
  - effective_from: '2024-01-01'
    formula: >-
      asset_is_dwelling

      and dwelling_has_affordability_restriction

      and purchaser_household_income_as_area_median_income_ratio <=
      affordable_homeownership_income_limit

      and purchaser_will_use_dwelling_as_primary_residence

community_land_trustCO 39 § 39-3-127.7 (b) · derived

39-3-127.7(b)

name: community_land_trust
kind: derived
entity: Corporation
dtype: Judgment
period: Year
source: 39-3-127.7(b)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: definition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
versions:
  - effective_from: '2024-01-01'
    formula: >-
      organization_is_federally_tax_exempt_501_c_3

      and
      organization_uses_shared_equity_model_for_long_term_housing_affordability

      and
      organization_acquires_and_maintains_real_property_while_selling_improvements_to_low_to_middle_income_primary_residence_households

improvementCO 39 § 39-3-127.7 (c) · derived

39-3-127.7(c)

name: improvement
kind: derived
entity: Asset
dtype: Judgment
period: Year
source: 39-3-127.7(c)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: definition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
versions:
  - effective_from: '2024-01-01'
    formula: |-
      asset_is_permanent_change_to_real_property
      and asset_change_augments_real_property_value

land_leaseCO 39 § 39-3-127.7 (d) · derived

39-3-127.7(d)

name: land_lease
kind: derived
entity: Asset
dtype: Judgment
period: Year
source: 39-3-127.7(d)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: definition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
versions:
  - effective_from: '2024-01-01'
    formula: >-
      asset_is_long_term_lease

      and lease_is_used_for_affordable_homeownership_property

      and
      leased_real_property_is_owned_by_community_land_trust_or_nonprofit_developer

      and lease_is_to_owner_of_improvements

      and lease_preserves_improvements_as_affordable_homeownership_property

nonprofit_affordable_homeownership_developerCO 39 § 39-3-127.7 (e) · derived

39-3-127.7(e)

name: nonprofit_affordable_homeownership_developer
kind: derived
entity: Corporation
dtype: Judgment
period: Year
source: 39-3-127.7(e)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: definition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
versions:
  - effective_from: '2024-01-01'
    formula: >-
      organization_is_federally_tax_exempt_501_c_3

      and
      organization_primary_mission_is_providing_for_sale_affordable_housing_to_low_to_middle_income_primary_residence_households

real_property_exempt_from_property_taxCO 39 § 39-3-127.7 · derived

39-3-127.7(3)(a)

name: real_property_exempt_from_property_tax
kind: derived
entity: Asset
dtype: Judgment
period: Year
source: 39-3-127.7(3)(a)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: >-
            Is held by either a community land trust or a nonprofit affordable
            homeownership developer
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: Has been split into a separate taxable parcel from the improvements
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: >-
            Is leased to the owner of the improvements as an affordable
            homeownership property
versions:
  - effective_from: '2024-01-01'
    formula: >-
      real_property_is_held_by_community_land_trust_or_nonprofit_developer

      and real_property_is_separate_taxable_parcel_from_improvements

      and
      real_property_is_leased_to_owner_of_improvements_as_affordable_homeownership_property

      and affordable_homeownership_property

improvement_exempt_under_this_sectionCO 39 § 39-3-127.7 · derived

39-3-127.7(5)

name: improvement_exempt_under_this_section
kind: derived
entity: Asset
dtype: Judgment
period: Year
source: 39-3-127.7(5)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: exception
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: >-
            Improvements on real property that qualifies for the property tax
            exemption described in this section are not exempt
versions:
  - effective_from: '2024-01-01'
    formula: 'false'

land_lease_submission_deadline_daysCO 39 § 39-3-127.7 · parameter

39-3-127.7(6)

name: land_lease_submission_deadline_days
kind: parameter
dtype: Count
source: 39-3-127.7(6)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-3-127.7
          excerpt: within twenty-five days of the initial execution of the land lease
versions:
  - effective_from: '2024-01-01'
    formula: '25'

▸rulespec code

Shown source

statutes/39/39-3-127.7.yaml

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View on GitHub

Rules

affordable_homeownership_income_limit

Parameter(a) in text ↖

source: 39-3-127.7(a)

- name: affordable_homeownership_income_limit
  kind: parameter
  dtype: Rate
  source: 39-3-127.7(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: at or below one hundred percent of the area median income
  versions:
    - effective_from: '2024-01-01'
      formula: '1.0'

affordable_homeownership_property

Derived(a) in text ↖

source: 39-3-127.7(a)

- name: affordable_homeownership_property
  kind: derived
  entity: Asset
  dtype: Judgment
  period: Year
  source: 39-3-127.7(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
  versions:
    - effective_from: '2024-01-01'
      formula: >-
        asset_is_dwelling

        and dwelling_has_affordability_restriction

        and purchaser_household_income_as_area_median_income_ratio <=
        affordable_homeownership_income_limit

        and purchaser_will_use_dwelling_as_primary_residence

community_land_trust

Derived(b) in text ↖

source: 39-3-127.7(b)

- name: community_land_trust
  kind: derived
  entity: Corporation
  dtype: Judgment
  period: Year
  source: 39-3-127.7(b)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
  versions:
    - effective_from: '2024-01-01'
      formula: >-
        organization_is_federally_tax_exempt_501_c_3

        and organization_uses_shared_equity_model_for_long_term_housing_affordability

        and
        organization_acquires_and_maintains_real_property_while_selling_improvements_to_low_to_middle_income_primary_residence_households

improvement

Derived(c) in text ↖

source: 39-3-127.7(c)

- name: improvement
  kind: derived
  entity: Asset
  dtype: Judgment
  period: Year
  source: 39-3-127.7(c)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
  versions:
    - effective_from: '2024-01-01'
      formula: |-
        asset_is_permanent_change_to_real_property
        and asset_change_augments_real_property_value

land_lease

Derived(d) in text ↖

source: 39-3-127.7(d)

- name: land_lease
  kind: derived
  entity: Asset
  dtype: Judgment
  period: Year
  source: 39-3-127.7(d)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
  versions:
    - effective_from: '2024-01-01'
      formula: |-
        asset_is_long_term_lease
        and lease_is_used_for_affordable_homeownership_property
        and leased_real_property_is_owned_by_community_land_trust_or_nonprofit_developer
        and lease_is_to_owner_of_improvements
        and lease_preserves_improvements_as_affordable_homeownership_property

nonprofit_affordable_homeownership_developer

Derived(e) in text ↖

source: 39-3-127.7(e)

- name: nonprofit_affordable_homeownership_developer
  kind: derived
  entity: Corporation
  dtype: Judgment
  period: Year
  source: 39-3-127.7(e)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
  versions:
    - effective_from: '2024-01-01'
      formula: >-
        organization_is_federally_tax_exempt_501_c_3

        and
        organization_primary_mission_is_providing_for_sale_affordable_housing_to_low_to_middle_income_primary_residence_households

real_property_exempt_from_property_tax

Derived

source: 39-3-127.7(3)(a)

- name: real_property_exempt_from_property_tax
  kind: derived
  entity: Asset
  dtype: Judgment
  period: Year
  source: 39-3-127.7(3)(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: >-
              Is held by either a community land trust or a nonprofit affordable homeownership
              developer
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: Has been split into a separate taxable parcel from the improvements
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: Is leased to the owner of the improvements as an affordable homeownership property
  versions:
    - effective_from: '2024-01-01'
      formula: |-
        real_property_is_held_by_community_land_trust_or_nonprofit_developer
        and real_property_is_separate_taxable_parcel_from_improvements
        and real_property_is_leased_to_owner_of_improvements_as_affordable_homeownership_property
        and affordable_homeownership_property

improvement_exempt_under_this_section

Derived

source: 39-3-127.7(5)

- name: improvement_exempt_under_this_section
  kind: derived
  entity: Asset
  dtype: Judgment
  period: Year
  source: 39-3-127.7(5)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: >-
              Improvements on real property that qualifies for the property tax exemption described
              in this section are not exempt
  versions:
    - effective_from: '2024-01-01'
      formula: 'false'

land_lease_submission_deadline_days

Parameter

source: 39-3-127.7(6)

- name: land_lease_submission_deadline_days
  kind: parameter
  dtype: Count
  source: 39-3-127.7(6)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-3-127.7
            excerpt: within twenty-five days of the initial execution of the land lease
  versions:
    - effective_from: '2024-01-01'
      formula: '25'

▸citations (6)

References

This rule cites 6 other rules.

CO 39 § 39-2-117inferredCO › Statutes › Title 39 › § 39-2-117
CO 39 § 39-2-117 (1)(a)inferredCO › Statutes › Title 39 › § 39-2-117 › (1)(a)
CO 39 § 39-2-117 (1)(a)(I)inferredCO › Statutes › Title 39 › § 39-2-117 › (1)(a)(I)
CO 39 § 39-2-117 (3)(a)inferredCO › Statutes › Title 39 › § 39-2-117 › (3)(a)
CO 39 § 39-2-117 (3)(a)inferredCO › Statutes › Title 39 › § 39-2-117 › (3)(a)
CO 39 § 39-2-117 (3)(a)inferredCO › Statutes › Title 39 › § 39-2-117 › (3)(a)