CO Code § 39-3-113.5 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 3 - Exemptions|Part 1 - Property Exempt From Taxation|§ 39-3-113.5. Property Acquired by Nonprofit Housing Provider for Low-Income Housing - Use for Charitable Purposes - Exemption - Limitations - Definitions

  As used in this section, unless the context otherwise requires:   “Area median income” means the median income of any county in which property is located in relation to family size, as published annually by the United States department of housing and urban development.    “Indicators of intent” means off-site activities of a nonprofit housing provider that establish the provider's specific intent to:   Use property for the purpose of constructing or rehabilitating housing to be sold to low-income applicants; or    Sell the property to low-income applicants for the purpose of constructing or rehabilitating housing for the low-income applicants.       “Low-income applicant” means an individual or family whose total income is no greater than eighty percent of the area median income and who applies to a nonprofit housing provider to assist in the construction and purchase of housing to be constructed by the provider.    “Nonprofit housing provider” 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:   Working with low-income applicants to construct or rehabilitate housing that the organization then sells to the low-income applicants for their residential use; or    Selling property to low-income applicants and then working with the low-income applicants to construct or rehabilitate housing for their residential use.          Subject to the limitations specified in subsection (3) of this section, for property tax years commencing on or after January 1, 2011, real property acquired by a nonprofit housing provider upon which the provider intends to construct or rehabilitate housing to be sold to low-income applicants or which the provider intends to sell to low-income applicants for the purpose of constructing or rehabilitating housing for their residential use is deemed to be being used for strictly charitable purposes, regardless of whether or not there is actual physical use of the property, and shall be exempt from property taxation in accordance with section 5 of article X of the state constitution. In the case of property sold by a nonprofit housing provider to a low-income applicant, the property tax exemption pursuant to this subsection (2) shall be allowed until a certificate of occupancy is issued for the housing; except that the property tax exemption shall not be allowed for longer than one year after the nonprofit housing provider sells the property to the low-income applicant. In determining whether a nonprofit housing provider satisfies the intent requirement of this subsection (2) with respect to particular property, the administrator may consider indicators of intent, including but not limited to:   The establishment by the nonprofit housing provider of a committee or other structure for the purpose of planning the construction or rehabilitation of housing on the property;    Steps taken by the nonprofit housing provider to obtain any required local government approvals for the construction or rehabilitation of housing on the property;    Steps taken by the nonprofit housing provider to develop and implement a financing plan for the construction or rehabilitation of housing on the property;    The hiring of architects, contractors, or other professionals by the nonprofit housing provider in preparation for the actual construction or rehabilitation of housing on the property; and    The solicitation or acceptance by the nonprofit housing provider of applications from low-income applicants for housing to be constructed or rehabilitated on the property.       The property tax exemption allowed to a nonprofit housing provider by subsection (2) of this section is subject to the following limitations:   The exemption may be allowed for a maximum of five consecutive property tax years, beginning with the property tax year in which the nonprofit housing provider obtained title to the property; and    If the nonprofit housing provider is allowed an exemption for any property tax year and subsequently sells, donates, or leases the property to any person other than a low-income applicant who assisted or will assist in the construction of housing for the applicant's residential use on the property, the provider shall be liable for all property taxes that the provider did not previously pay due to the exemption.        History. Source: L. 2011: Entire section added, (HB 11-1241), ch. 248, p. 1082, § 1, effective August 10. L. 2013: (1)(b), (1)(c), (1)(d), IP(2), and (3)(b) amended, (HB 13-1246), ch. 203, p. 845, § 1, effective August 7.