-E 

### ATTO 

### m GE&RN. OF TEXAS

FVILL WIJiSON ATTORNEY GENERAL **August** 

### 80, 1962

Mr. Bkey Walker CriminalDistrictAttorney OpinionNo. UU-l&7 Waco, 

### Texas Rb: whether the lGcu6velt Rote1 Is exempt from **ad valoran**  **twer amdbr**  

### Dear Mr. Walker: the rtatedfaobr 

### Thie will acknowledgeyour requestfor an opinionunder date of **Augustl,** 

### 1962. Your 16tterand a 

### statementattacrhsd theretoapI 

### Sxhlblt**A** 

### set forth the followingSacts.

“An applicationfor exemptionf’rom ad va&orem taxeshas beenmade by the Allen &k%kmaldFoundation,a Texasnonproilt 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&enNaDoneld Foundation. Bishop L. J, Relaher 8 preo dent of tbr foumlatlon, and, aa Such, haa 

### requestedthe exmptlon~oi the prQportpfro0 ad, valorem taxes,underthe vrovlsionrof Section7 of Lrtlcla 7150,. Vernon’sCivtl Statutes,**and Sadi-**  **2** of **h%icSe** 

### 8 of 

### the Tour Constitutionon the r a charitable.

lnstltu 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



### unentry into ‘tha mme will be ahuqmj, “c) Plderlg -10 r&la u1 able to vay will be aeked to py 

### th,.oort 

### oi lodging0food and otheruervlceu mrnlshed by the Born;;; “d) 

### No cala

till k d*slldrgtrrrm becauseof Lnrbllityto ptyj %n WI ia which the applicantaannotpay 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 ~~111be a amount9 he accordance to be paid matter of negotiation @ndmutual 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 Homemust 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 Homemay not be sufficient to pay all costs, including service of the proposed FHAloan. 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 Homeare not sufflcient,‘the deficit will be met from funds of the Catholic Church or contributions from its members. 

### ”I) The Homewill 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 Homewill 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, anMr. 

### BurneyWalker, 

### Page 4 OpinionNo. 

### WV-1427

actual 

### and directuse of the roperty on and prior to JanUary 1, 

### 19 9, t iOr 

### the charitablePurpoBe." Under the facts stated,AllenMcDonaldFoundationquallfles as a charitablecorporation, and althoughthe property InvolvedIs taxableunder the presentownership,It will become exemptaa of January 1stnext after It Is conveyedto the corporationto be used for the purposesstated.

SUMMARY

exempt from ad valorem 

### but will become exempt conveyedto charitable Under statedfasts,real estate Is not

taxes at present time, 

### Janirary

1st after It Is aopporitlon.
Yours very truly,
WILL WILSON AttorneyMneral’ ot Texas



### Jm/Jv APPROVED: OPINIONCOMMITTEB: MorganNesbltt,Chairman
L. P. Lollar Fred D. Ward 

### RobertA. 

### Rowland REVIEWBDFORTHEA'M'ORNEYQZNERAL By: LeonardPassmore
.