Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 110 - Property Tax Credits and Exemptions › Rule 701-110.4 - Low-rent Housing for the Elderly and Persons With Disabilities

Current through Register Vol. 47, No. 3, July 24, 2024
(1) As used in Iowa
				Code subsection 427.1(21), the term "nonprofit organization" means an
				organization, no part of the net income of which is distributable to its
				members, directors or officers.
(2)
				As used in Iowa Code subsection
				427.1(21), the
				term "low-rent housing" means housing the rent for which is less than that
				being received or which could be received for similar properties on the open
				market in the same assessing jurisdiction. Federal rent subsidies received by
				the occupant shall be excluded in determining whether the rental fee charged
				meets this definition.
(3) As used
				in Iowa Code subsection 427.1(21), the term "elderly" means any person at least
				62 years of age.
(4) As used in
				Iowa Code subsection 427.1(21), the
				term "persons with physical or mental disabilities" means a person whose
				physical or mental condition is such that the person is unable to engage in
				substantial gainful employment.
(5)
				The exemption granted in Iowa Code subsection
				427.1(21)
				extends only to property which is owned and operated, or controlled, by a
				nonprofit organization recognized as such by the Internal Revenue Service.
				Property owned and operated, or controlled, by a private person is not eligible
				for exemption under Iowa Code subsection 427.1(21).
(6) The income of persons living in housing
				eligible for exemption under Iowa Code subsection 427.1(21) shall not be
				considered in determining the property's taxable status.
(7) An organization seeking an exemption
				under Iowa Code subsection
				427.1(21) shall
				file a statement with the local assessor pursuant to Iowa Code subsection
				427.1(14).
(8) The exemption authorized by Iowa Code
				subsection 427.1(21) 
				extends only until the final payment due date of the borrower's original
				low-rent housing development mortgage on the property or until the borrower's
				original low-rent housing development mortgage is paid in full or expires,
				whichever is sooner. If the original mortgage is refinanced, the exemption
				shall apply only until what would have been the final payment due date under
				the original mortgage or until the refinanced mortgage is paid in full or
				expires, whichever is sooner. This exemption for refinanced projects applies to
				those projects refinanced on or after January 1, 2005.
(9) In complying with the requirements of
				Iowa Code subsection 427.1(14), the
				provisions of rule 701-78.4 (427) shall
				apply.
(10) In determining the
				taxable status of property for which an exemption is claimed under Iowa Code
				subsection 427.1(21), the
				appropriate assessor shall follow rules 701-78.1(427,441) to
				701-78.5 (427).
(11) If a portion of a structure is used to
				provide low-rent housing units to elderly persons and persons with disabilities
				and the other portion is used to provide housing to persons who are not elderly
				or disabled, the exemption for the property on which the structure is located
				shall be limited to that portion of the structure used to provide housing to
				the elderly and disabled. Vacant units and projects under construction that are
				designated for use to provide housing to elderly and disabled persons shall be
				considered as being used to provide housing to elderly and disabled persons.
				The valuation exempted shall bear the same relationship to the total value of
				the property as the area of the structure used to provide low-rent housing for
				the elderly and persons with disabilities bears to the total area of the
				structure unless a better method for determining the exempt valuation is
				available. The valuation of the land shall be exempted in the same
				proportion.
(12) The property tax
				exemption provided in Iowa Code subsection
				427.1(21) 
				shall be based upon occupancy by elderly or persons with disabilities as of
				July 1 of the assessment year. However, nothing in this subrule shall prevent
				the taxation of such property in accordance with the provisions of Iowa Code
				section 427.19.
This rule is intended to implement Iowa Code section
				  427.1(14)  and
				  Supplement section 427.1(21).