-E ATTO m GE&RN. 

OF TEXAS 

FVILL WIJiSON 

ATTORNEY GENERAL August 80, 1962 

Mr. Bkey Walker 

Criminal District Attorney 

Opinion No. UU-l&7 

Waco, Texas Rb: whether the lGcu6velt 

Rote1 Is exempt from 

ad valoran twer amdbr 

Dear Mr. Walker: the rtated faobr 

Thie will acknowledge your request for an opinion under 

date of Augustl, 1962. Your 16tter and a statement attacrhsd 

thereto apI Sxhlblt A set forth the following Sacts. 

“An application for exemption f’rom 

ad va&orem taxes has been made by the 

Allen &k%kmald Foundation, a Texas nonproilt corporation, for the Roosevelt 

Note1 here In Waco. The foundation ‘will 

operal$e the hotel a# a home for the 

The~~mvelt Rote1 18 bely oonvymd to th, Al&en NaDoneld 

Foundation. Bishop L. J, Relaher 8 preo dent of tbr foumlatlon, 

and, aa Such, haa requested the exmptlon~oi the prQportp fro0 ad, 

valorem taxes,under the vrovlsionr of Section 7 of Lrtlcla 7150,. 

Vernon’s Civtl Statutes, and Sadi- 2 of h%icSe 8 of the Tour 

Constitution on the 

a charitable. lnstltu r 

ollnd that t3mpmpePty will Lm operated aa 

ion. 

In e-8-t or thin retpent, 

submitted: 

“a) The Rome will be 

non-profit basisi 

the follou%ng 

ovented on a 

un entry into 

‘tha mme will be ahuqmj, 

“c) Plderlg -10 r&la u1 able to 

vay will be aeked to py th, .oort oi 

lodging0 food and other uervlceu mrnlshed by the Born;;; 

“d) No cala till k d*slld rgtrrrm 

because of Lnrbllity to ptyj %n WI ia 

which the applicant aannot pay the W1 

ln?orMt1on wae 

: 
Mr. Burney Walker, Page 2 Opinion No. WW-1427. 

will be asked to. pay In 

with his means, the amount 

In such caftes ~~111 be a 

amount9 he 

accordance 

to be paid 

matter of negotiation @nd mutual agPeement; each case will be considered on 

its merits; in oases where the applicant 

is unable to make any payment, the Foundation will not hesitate to pay lOO$ of the 

cost of maintenance; 

“e ) It is anticipated that the average 

cost of maintenance will be $1’70,00 per 

month; 

‘If) The experience of other Homes for 

older adults across the nation has ahown 

that quite often emergency financial needs 

result in connection with the last Illness 

and death of residents In such homes. Quite 

often expenses cannot be met br the resldent In the Home. 

bear this expense. 

case will be borne 

Foundation. 

Therefore the Home must 

Such expense In this 

by the Allen McDonald 

“8) The entire 

. 

premises upon which 

exemption 1s requested will be devoted 

lOO$ to the operatl~on of the Hams; 

“h) Revenues from operation OS the 

Home may not be sufficient to pay all 

costs, including service of the proposed 

FHA loan. In my capaolty as Catholic 

Bishop of the Diocese of Austin, I have 

agreed to underwrite payments ~,on’ the 

loan e In effect, this means if revenues 

from operation of the Home are not sufflcient,‘the deficit will be met from funds 

of the Catholic Church or contributions 

from its members. 

” I) The Home will be non-sectarian. 

It will have both Protestants and,Cathollc 

chapels and also facilities for Jewish 

worship: should the need arise. Obvious - 

ly a substantial number of the occupants 

of the Home will be persona from.Waco 

and McLennan County. 
Mr. Burney Walker, Page 3 Opinion No. WW-1427 

The Roosevelt Hotel la being repaired and Improved at this 

time to meet the requirements of a home for the aged. Information from your letter and the Exhibit A attached thereto shows 

that the hotel, aa of July 3, 1962, has not been conveyed td the 

Allen McDonald Foundation. 

Your letter ftither states that: 

“According to Exhibit A, the operation of the Roosevelt Hotel will meet 

all of the rqqulrements set forth in 

Opinion No. WW-1277. The only addltlonal point that might be covered Is 

that whether or not the hotel Is now 

exempt from ad valorem’taxes. , , .” 

Although you state that the Roosevelt Hotel is being repaired and Improved at this time to meet the requirements of a 

home for the aged, you also state that Roosevelt Hotel has not 

been conveyed to the Allen MeDonald Foundation. 

We are not advised as to who was the owner and holder of 

title to this propeoty on the first day o,f January, 1962. Since 

It was not owned by the Allen McDonald Foundation on that date, 

it could not be exempt from taxatlon for 1962 under the theory 

that It Is Intended to be later used as a charitable home for 

the aged. 

In Hedgecroft v. City of Houston, 150 Tex. 654, 244 S.W,2d 

632, Petitioner Is a corporation organized for the operation of 

a hospital, clinic and training school and Is an Institution of 

purely public charity. It acquired titled to the property on 

December 30, 1948 and was inthe process of altering and Improving 

from prior to the time title was acquired until May 13, 1949 when 

the Hedgecroft Cllnti.imosred into the premises and started operation, 

Quoting from the opinion, the aourt said at page 636: 

“Petltloner~e acts on and before January 1, 1949, as alleged lti the ,petltlon, 

the substance of which has been set out 

at the beginning of this opinion, were 

part of the necessary preparation and remodeling of the bufldlng for operation as 

a hospital and alIn&&. The work proceeded 

until it was completed on May 13, 1949, 

and since that time the hospital and clinic 

have been operated as a public charity. 

The facts alleged show, in our opinion, an 
Mr. Burney Walker, Page 4 Opinion No. WV-1427 

actual and direct use of the roperty 

on and prior to JanUary 1, 19 t 9, iOr 

the charitable PurpoBe." 

Under the facts stated, Allen McDonald Foundation quallfles as a charitable corporation, and although the property 

Involved Is taxable under the present ownership, It will become exempt aa of January 1st next after It Is conveyed to the 

corporation to be used for the purposes stated. 

SUMMARY 

exempt from ad valorem 

but will become exempt 

conveyed to charitable 

Under stated fasts, real estate Is not 

taxes at present time, 

Janirary 1st after It Is 

aopporitlon. 

Yours very truly, 

WILL WILSON 

Attorney Mneral’ ot Texas 

Jm/Jv 

APPROVED: 

OPINION COMMITTEB: 

Morgan Nesbltt, Chairman 

L. P. Lollar 

Fred D. Ward 

Robert A. Rowland 

REVIEWBDFORTHEA'M'ORNEYQZNERAL 

By: Leonard Passmore .