Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 80 - Property Tax Credits and Exemptions › Rule 701-80.4 - 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
				4271(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
				4271(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
				4271(21).,
				the term "elderly" means any person at least 62 years of age.
(4) As used in Iowa Code subsection
				4271(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
				4271(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
				4271(21)..
(6) The income of persons living in housing
				eligible for exemption under Iowa Code subsection
				4271(21).
				shall not be considered in determining the property's taxable status.
(7) An organization seeking an exemption
				under Iowa Code subsection
				4271(21).
				shall file a statement with the local assessor pursuant to Iowa Code subsection
				4271(14)..
(8) The exemption authorized by Iowa Code
				subsection
				4271(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
				4271(14).,
				the provisions of rule
				701-784. (427)
				shall apply.
(10) In determining
				the taxable status of property for which an exemption is claimed under Iowa
				Code subsection
				4271(21).,
				the appropriate assessor shall follow rules
				701-781.
				(427,441) to
				701-785.
				(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
				4271(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
				42719..
This rule is intended to implement Iowa Code section
				  427.1(14) and Supplement section
				  4271(21)..