South Florida Community Development Coalition

"Charitable" Exemption From Payment of
Ad Valorem Property Taxes
For "Affordable Housing" Properties

Sample Narrative
"Affordable Housing" Exemption (the Safe Harbor)
WARNING: Use Only for Occupied Rental Units

Attach the following items to your application:

the property's deed
501(c)(3) determination lettter from the IRS,
most recent audit.
budget
a listing of paid staff and their salaries
A rent roster showing the names of the tenants on January 1st and the rents that they paid
A list showing the incomes of each tenant as of January 1st
a narrative describing the properties qualification (see below)

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 text below (using your clipboard) and then "pasting" it into your wordprocessor

<Name of Organization>
Appraiser's Parcel Number: <insert folio number>
Attachment to Form DR-504 - Ad Valorem Tax Exemption Application
Question #9

The property is exempt under the provisions Section 196.1978, Florida Statutes (the affordable housing property exemption) for the following reasons.

The property is being used for charitable purposes because it is currently being utilized to provide rental housing affordable to people meeting income limits specified in Sec. 420.0004 (9), Florida Statutes"

The Applicant is recognized as exempt under section 501(c)(3) of the IRS Code (copy of its determination letter is attached) and is an organization described in Rev. Proc. 96-32, 1996-1 C.B. 717 in that: at least 75 percent of the units in all of its projects are occupied by residents that qualify as low-income; and (b) either at least 20 percent of the units are occupied by residents that also meet the very low-income limit for the area or 40 percent of the units are occupied by residents that also do not exceed 120 percent of the area's very low-income limit. No more than 25 percent of its units are provided at market rates to persons who have incomes in excess of the low-income limit.

<insert one of the following two paragraphs>

Alternate 1: "All of the property is exempt from the payment of Ad Valorem taxes because all of the units are affordable to people meeting income limits specified in Sec. 420.0004 (9), Florida Statutes."

Alternate 2: "____% of the property is exempt from the payment of Ad Valorem taxes because ____% of the units are affordable to people meeting income limits specified in Sec. 420.0004 (9), Florida Statutes."