Part III: Sample Narrative for "Charitable Use" Exemption (all properties other than occupied rental units) Attach the following items to your application:
Question 9 of the Exemption Application reads as follows: "What is the Property Used For?" You should answer "see attachment". Below is the outline for the narrative that you will then need to attach to the Application. You can (1) download a wordprocessing file containing the narrative by Clicking Here OR (2) you can "clip" the sample narrative text below (using your clipboard) and then "pasting" it into your wordprocessor
<Insert
Name of Organization>
Attachment
to Form DR-504 - Ad Valorem Tax Exemption Application
Under
Florida Law property that is used for "charitable" purposes
and which is owned by a nonprofit organization whose purposes are
charitable is exempt from ad valorem taxation (section 196.196,
Florida Statutes). For a parcel to qualify for this exemption three
conditions must be met: (1) The owner must be "non-profit",
(2) the owner's purposes and activities must be charitable, and (3)
whether the property must be used for charitable purposes See Turner
vs Trust for Public Land 445 So.2d 1124 (Fla. App. 5 Dist. 1984) .
The
parcel covered by this application meets these criteria as follows:
1. THE
OWNER IS "NONPROFIT"
The
applicant is "nonprofit" within the meaning of section
196.195, Florida Statutes. The applicant is recognized as being
exempt under section 501(c)((3) of the IRS Code and meets the
specific requirements of section 196.1995 as follows:
196.195(2)(a)
- The organization has made no payment of any kind to its directors,
trustees, members, or stockholders. None of its paid staff are
members of the board of directors. All compensation paid to its
staff is reasonable. It has made no payment of any kind to any
person, company or other entity controlled by the organization.
196.195(2)(b)
- The applicant has made no guaranty of a loan to, or an obligation
of, any officer, director, trustee, member, or stockholder of the
applicant or any entity directly or indirectly controlled by such
person. The applicant pays no compensation to its directors,
trustees, members, or stockholders for services rendered to or on
behalf of the applicant. None of its paid staff are members of the
board of directors. No officer receives compensation if they are on
the board of directors. Any compensation paid to an officer is done
pursuant to an employment contract (either oral or written). All
compensation paid to its staff is reasonable
196.195(2)(c)
- All contracts by the applicant for services, goods, supplies are
reasonable. The applicant is publicly funded by local government and
all procurement is monitored and done pursuant to the federal
procurement standards found in 24 CFR 85.
196.195(2)(d)
- The applicant is publicly funded by local government closely
monitored. All salaries for the operation of its services are
approved by its public funding source and are reasonable. All
procurement is monitored by its local government funding source and
is done pursuant to the federal procurement standards found in 24 CFR
85. Any mortgages on its properties where likewise incurred under
monitoring by local government.
196.195(2)(e)
- The applicant does not charge for its services.
196.195(3)
- Because the applicant is recognized as exempt under section
501(c)(3) of the IRS Code no part of any proceeds from the
disposition of its property inures to the benefit of any of its
members, directors, or officers or any person or firm operating for
profit or for a nonexempt purpose.
2. THE
OWNER's PURPOSES ARE CHARITABLE
The
applicant's articles incorporation strictly limit its purposes to
those considered "charitable" within the meaning of Section
501(c)(3) of the Internal Revenue Code. 3. THE PROPERTY IS USED FOR CHARITABLE PURPOSES The term "charitable purpose" is defined in Section 196.012(7) as follows: "Charitable
purpose" means a function or service which is of such a
community service that its discontinuance could legally result in the
allocation of public funds for the continuance of the function or
service. It is not necessary that public funds be allocated for such
function or service but only that any such allocation would be legal"
The
parcel covered by this application meets this definition. The land
is actively being used for the development of housing affordable to
low income persons. <<** NOTE: if the parcel is currently vacant and hard construction has not yet begun but the developer is actively engaging in pre-development activities you need to INSERT HERE a full detailed, and complete description of any and all predevelopment activities that are taking place (such as soil tests, loan/grant applications, architectural work, platting, etc.). The idea is to show that the land is currently be used for the development of affordable housing even though to the naked eye it looks like a vacant piece of land.**>> Were the applicant to discontinue this activity its low income customers, by law, could legally qualify for government rental housing subsidies under the either the Section 8 or the "public housing" programs (subject to the relevant waiting lists). ********************************************* 4. THE APPLICANT IS A "CDC" AS DEFINED IN FLORIDA STATUTES CHAPTER 163: A majority of the Applicant's board members are elected by members of the corporation who are stakeholders comprising a mix of service area residents, area business property owners, area employees, and low-income residents. The board of directors of the Applicant includes low-income residents. The Applicant is maintains a service area in which economic and housing development projects are located and (**** choose one or more of the following and delete the rest ***) has been designated as a slum area or a blighted area (or is located completely etely within the such an area) as defined in Chapter 163 F.S., - the area is a community development block grant program area in which community development block grant funds are currently being spent or have been spent during the last 3 years as certified by the local government in which the service area is located, - the area is a neighborhood housing service district - the area is contained within a state enterprise zone designated on or after July 1, 1995, in accordance with FS 290.0065 - the area is contained in federal empowerment zones and enterprise communities. The purposes of the Applicant include developing, selling, owning, and managing subsidized affordable housing designed for persons with very low incomes or low incomes, or for WAGES recipients. 5. THE APPLICANT'S DEVELOPMENT PLAN FOR THE PROPERTY ****************** |
