HomeMy WebLinkAboutAgenda - 06-01-1999 - 8ht.
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 1, 1999
Action Agenda
Item No. g -~
SUBJECT: Application for Property Tax Exemption -UCC Living Centers, Inc.
DEPARTMENT: County Assessor PUBLIC HEARING: (Y/N) No
INFORMATION CONTACT:
John Smith, ext 2101
4/23/99 UCC Living Centers Letter TELEPHONE NUMBERS:
4/1/96 Banks Law Firm Letter Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
ATTACHMENT(S):
Exempt Status Resolution
6/30/98 Exemption Application
PURPOSE: To consider an application from UCC Living Centers, Inc.for granting exempt status
from ad valorem taxation for the 1998 tax year.
BACKGROUND: UCC Living Centers, Inc. is anon-profit organization affiliated with the United
Church of Christ. In 1998, this organization opened a new affordable housing facility for.the
elderly (Covenant Place) on property located at the corner of Smith Level Road and Culbreth
Road. The property consists of forty Section 202 rental apartment units, reserved for persons
62 years of age and older who earn no more than fifty percent of the median income for Orange
County.
The United Church of Christ filed an application for property tax exemption in July 1998. The
exemption request should have been filed during the normal listing period in January, 1998.
However, NCGS 105-282.1(a)(5) does allow some flexibility. The statute provides in part that
"upon a showing of good cause by the applicant for failure to make a timely application, an
application for exemption or exclusion filed after the close of the listing period may be approved
by the Department of Revenue, the board of equalization and review, the board of county
commissioners, or the governing body of a municipality, as appropriate. An untimely application
for exemption or exclusion approved under this subdivision applies only to property taxes levied
by the county or municipality in the calendar year in which the untimely application is filed".
The UCC application can be approved for 1998 based on the statutory provisions related to
exempt property cited in NCGS 105-278.6(a)8 and 278.6(e). The opinion of the Assessor is
that the information provided by UCC satisfies the good cause requirement for untimely filing
cited in NCGS 105-282.1(a)(5). The property has already been listed as exempt for 1999.
~~' ~ t
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FINANCIAL IMPACT: Approval of exemption of this property (currently valued at $1,825,361)
would result in the release of a 1998 tax bill of $22,657.66, distributed between taxing
jurisdictions as follows:
Orange County $16,464.76
Chapel Hill-Carrboro Schools 3,504.69
South Orange Fire District 1,606.32
Accrued Interest 1,081.89
RECOMMENDATION: The Administration recommends that the Board adopt the resolution
approving the application for 1998 exemption.
2a
NORTH CAROLINA
ORANGE COUNTY
EXEMPT STATUS RESOLUTION
Whereas, North Cazolina General Statutes 105-282-1 empowers the Boazd of County
Commissioners to approve applications for exemption after the close of the listing period, and
Whereas, good cause has been shown as evidenced by the information packet provided,and
Whereas, the County Commissioners have determined that the applicants could have been
approved for 1998 had applications been timely.
NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF ORANGE COUNTY THAT the properties applying for exemption for
1998 are so approved as exempt.
Upon motion duly made and seconded, the foregoing resolution was passed by the following
votes:
Ayes: Commissioners
Noes:
I, Beverly A. Blythe, Clerk to the Boazd of Commissioners for the County of Orange, North
Cazolina, DO HEREBY CERTIFY that the foregoing has been cazefully copied from the recorded
minutes of the Boazd of Commissioners for said County at a regular meeting of said Board held on
said record having been made in the Minute Book of the minutes. of said Boazd, and is
a true copy of so much of said proceedings of said Board as relates in any way to the passage of the
resolution described in said proceedings.
WITNESS my hand and the corporate seal of said County, this day of
1998.
Clerk to the Boazd of Commissioners
s orm w w_: a
c~,<. L'Ol
':'~Ai? 3998
- _: 3
AP°LiCATIOiV FGR ?ROPERTY TAX EX.=,7iPTION
County Orange Town or City Carr~oro
owRe; UCC Living Centers T~')r^.nrnnral-.aA
Address 100 Leonard Avenue N ~trt-nn ~~ 28658
(Stract or Route) (To+nt) (State) (Zip Code)
4 .. - io3 C.t,~•i ~,t ~h-~-~
1.
Locstton of Property
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INSTRUCTi0P1S
Under tha proriaiona of G. S. 103-2aZ1 ersry ortt er o! ptogerry elaimint azneptioa er aseln aion (tom ptopert~ uzsa moat
dsmewatra is that the Droosrry mesa the aumwry requuiremeats [or azemotion or elsaaific:tiaa. Gaims fer eztmtptioa or azclu-
aion must Js Clod with th• tea sunerrisot of the wunry in ••hieh tha prvpsrty is located. (ase rerene aids) Ciainu for e:emta.
don should iacluda ell land and imoror®enu and personal propsrtp situated. dtsrtwa and txnaplen ialormauoa nisrdiai its nos.
Theundersignedowner of authorized representative hereby pc titions Cot exemption of the following descibed prop-
erty:
2. Give complete description of property:
Land• ~ 914 At~rPa
meats:
Personal Property:
3. List and explain the purposes for which the property is used:
Lana: Low income elderly housing
Improvcmenu: Si3I[le aS abOVe
Persona! Property
+. If any organization ocher than the owner uses the property, give the name of the or;anization. Cull particulars
regarding its use of the~~roperty and the amount of any ineor..e rcccivt:d for such use.
S. Give amour estimate of the true value
in money of thtr ro err
Land ~ 213 r'~IOg.(~0
Improvements ~R]US s 31 ? _ 00
Personal Property: 140.631.00
b. List the insurance value of the property:
SXXXXXXXXXXXX:.X XXXXXXXX XX7cX :XZSXXXXXXX
b. Upon what uses or purposes do ;rou base this claim for exemption? Charitable Ql:); Religious ( );
Educational ( ); Literary ( ): Scientific ( ); Cther
7. Give the specific starstory authority upon which this properi•~ is claimed as cXempt: G.S.~~. 105-278.5
(a) (8) and 24 C F R & 202 et gam,
(Foil texts of all eze:eption and classification statrctes are availccle at the of[ice of the munry tax supervisar_)
AFFIR.1lATlCN
• IInder pstrateisa prescribed b7 las, t hsrstr/ afArm that la tha boat of toy taorlsdt• and belief, the atatseaeaes and infotmatien in this
application ors one and wrrect. sad ors made for the parpoas of •saaoptiat tlaa 9toDerty herein deatYibsd f acioa.
'JLlne '0 . 19 _9S_ ,V/(•'//1---- i~l~~
- Sisaature o! orna or aathorizcd represtmunre
.~
Co-Chairman s60-3334
Title Telephone ,l'a.
APPELLATE ~~IDE~ Fax:919-56G3288 Apr 23 '99
14:39 P.Oli03
4
300 Iteade Road
Chapel Hd1, NC 27516
919.929.9655
ApnY 23, 1999
Mr. John~Smitti
e C}a~.nty Tax Assessor
Pos~~e Box 8181
Hillsborough, North Carolina 27278
Re: UCC Y.ivn„j~,
(Covenant ace)
No. 756002
near Mr.l Smith:
I a`~ .writing on behalf of UCC Living Cc~ers, Inc. to request the County to exempt
Cove~aan Placic property taxes for 1998.
U Livir~ Centers, Inc. operates a Section 202 apartment building (Covenant
Place) o~ the property at issue. The forty units axe r~scrved for persons at least 62 years
old, who tarn no ~inore than fifty per cent of the median income for the County. Therefore,
this propr~rty des for the Sec.10~5-2'f8.6(a)(8) exemption.
W~ did: ao~ file our.A~plication for Exemption until July 9, 1998. 'The reason for the
Late filing was that UCC I.ivmg Centers, Znc., anon-profit corporation formed solely for the
purpose f proviti~ this low inc;omc housiung, was advised by its counsel that it did not
need to ~e an Application until the property was "placed in service." X am enclosing a copy
of the letter from our attorney, dated April 1, 1996. We relied on this advice, and thus our
Application was late. 'We hope and believe this good 1~aith reliance on our professional
counsel ~ sufficient good cause to justify approval of our late Application.
Thank yon very much .for your consideration of this matter, and please call me if you
regwre fiatber infoxam~ation.
Sincere/~ly,
l~auicolm Ray Hunter, r.
Co-Chair
UCC Living Centers, inc.
Enclosure
cc: Mr. VVilmex Brown
APPELLATE DE~NDER Fax:919-560-3288
d-23-1999 1 1 : 33AM FRUM ~~b /;~ / ~ I y
Apr 23 '99 14:39
P. G2/03 . t
Tr-tE ~ANK~ LAw Ftt#M. P. X41.
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Tye H.mtex,lco-Chafr
Nancy A,tv~+a , Co-fair
UCC Liv~g I Ca>~ra, Inc.
300 Mcr~cdith Dtivs, Suite 200
Llarbam, N~ 27?I3
Re: ;Tax F.ao~pption
Dear Tjro at~d N~rury:
~~KR
twa•*~~ aw r~w•o
ti r. w.wTar rwtlet. !u~ sN
A•~aaa, .owr« O~.vu.~. twos
r~l W~ao
^~ ~ .s. are.
You eve rrquested that I provide yon with an opinion as to the rrAl and personal
progeny tax conseque>aces of UCC Living Cr~ntets, Inc. ("t1CC~ acquiring sad de~velopia8
rcat pro ig the 4~ty of Csrrbo% tlu Coaaiy of Orange, Sta~oc of North Carding ~
the pvrpole Pf bv~t7ding a Hi7D Sew 20Z project tv be Ioavwp as 'ti'CC Living C~~ters"-
For purpase+~ of renderinb tiw opinion, I ~taye revicw~cd the Articlos.of Ltoorporatyon, ~`
I,.aws, c7rgaDizational Miautss, HUD ~tetiStratioa of Selection i3pr a Section ?02 Fiord
R.taservation ~dstedSeptsmber Zp,19QS, applicable North Cs~roliaa GeosraI Statsttss and each
other docuaian# and Isws xs I bave ds~ed appropriate to the rendering of tl~it opinion.
Based apon~ ~mY rernw of the foregoing documents and upon the stssvmptioa that the
real sad peraatral prgpexry of UCC wr71 be used far the puipo~.s set forth is its At~ic3es of
Incorporati i ~ ~of the opinie® that UCC Lividg Geater w~l meet the crite#ia inr
exaaaption sd vatarsm taxes npoa its real and ptsrsomai prope~- +uader North Carolina
Genera! Sta ~~203-278.6(x)(8). Said statute e~mpts non-probt corporatio~us rvhea their
real grope n~ xcteta~y sad eaxlutive)y occupied and used, and when their personal property
is entirely oompktciy tsxd for thr c~sritgble purposes otttli~Dea m the statutes. It is my
apinf~ ctiat~tJCC aq~d UCC Living.Centsr wt~l utezt the charitabk ptnpa~s outlined is the
stawtes. '
After the An'lxriY has beta placed in serviCC. UCC should ille for the tax exeutpdoa
with the Ortalugs Cotisty Tea Assrsw:'s office. (3uce the exempdom bas boon granted. UCC
wr71 have tlb obliaatie~ to Sk annually !er said exemption ex~aept is the following
!. RPPELlATE DEFENDER Fax:919-5n0-3288
~^z3^ ti 9~9 ~ i , ~,~ rim moo, G, w , ~ Rpr 23 '99 14 :39 P. 03f03
6
cirenm3'ianves: (i) Aear or additional property is acquired or improvemeats are added or
remevGd necessitating a cssang~ is the vahtatsoa of the property, or (v`~ tHese is a cbadge m
the use o~ the property or tba gwdiscatia~s or elig~b;~iry of UCC.
Sincoxely,
S Baaks
OR 'T~iB FIRM
~ A two