Subchapter III. Nonprofit Housing for the Elderly
TITLE 9
Counties
County Taxes
CHAPTER 81. LIMITATIONS UPON TAXING POWER
Subchapter III. Nonprofit Housing for the Elderly
§ 8151. Property subject to exemption.
Land and improvements held by a church, religious society, charitable corporation, or nonprofit organization principally devoted to housing of elderly persons and not held for investment and which is constructed pursuant to the provisions of § 231 of the National Housing Act, as presently in effect and set forth in 12 U.S.C. § 1715v and which is regulated by the Federal Housing Commissioner pursuant to such section and pursuant to the applicable federal regulations presently in effect adopted by the Federal Housing Commissioner, shall not be liable to taxation and assessment for public purposes by any county or other political subdivision of this State; provided, however, that no less than 75% of the dwelling units in the property shall be rented and occupied at all times by elderly persons as defined in § 8152 of this title and the entire property shall be operated on a nonprofit basis.
9 Del. C. 1953, § 8151; 55 Del. Laws, c. 178.;
§ 8152. Definitions.
As used in this subchapter, the term "elderly persons" means persons who have attained their 62nd birthday.
9 Del. C. 1953, § 8152; 55 Del. Laws, c. 178.;
§ 8153. Certification as tax exempt.
No church, religious society, charitable corporation or nonprofit organization shall be entitled to the exemption granted by § 8151 of this title unless it is certified as tax exempt by this State for purposes of corporate franchise taxes and income taxes, and by the United States government for purposes of income taxes; such certification must be filed with the appropriate tax assessment office of the county and other political subdivision of this State in which the project is situate.
9 Del. C. 1953, § 8153; 55 Del. Laws, c. 178.;
§ 8154. Conditions for charitable exemptions; penalty for false statement or certification.
No church, religious society, charitable corporation or other nonprofit organization shall be entitled to the exemption granted pursuant to this subchapter unless the following additional conditions are satisfied:
(1) An affidavit must be filed with the taxing authorities of the county and other political subdivisions by the president of the organization or the executive director or presiding authority of the organization, certifying that said organization is nonprofit and that the project for which exemption is sought is operated on a nonprofit basis and is principally devoted to housing for the elderly as defined in § 8152 of this title. The affidavit must further state the name and address of the officers of the organization, the purposes of the organization, and the basis for the authority of the officer to make and file such affidavit on behalf of the organization;
(2) A certified financial statement must be filed with the taxing authorities showing all income received by the organization from any source in connection with the project and all expenditures made to any person in connection with the project for which exemption is sought; the statement must be certified by a certified public accountant authorized and licensed to practice in this State. The statement must be filed on or before July 1 of each calendar year; a projected statement must be filed for the first year of operation;
(3) A certification must be filed with the taxing authorities of the county and other political subdivision by the authorized officials of the organization certifying, warranting and covenanting that the project for which exemption is sought will be operated on a nonprofit basis during its entire existence and that it will not be sold, transferred, or conveyed except to another nonprofit church, religious society, charitable corporation or nonprofit organization qualifying for exemption under this subchapter and will not be principally devoted to any purpose other than housing for elderly persons as defined in § 8152 of this title. This certification shall bind the organization filing it in perpetuity and shall be enforceable in law and at equity by the county and other political subdivision of this State in which the project is situate;
(4) Any person, officer or director acting on behalf of any church, religious society, charitable corporation or nonprofit organization filing a false statement or certification shall be fined not less than $1,000 nor more than $10,000 and/or be imprisoned for not more than 10 years.
9 Del. C. 1953, § 8154; 55 Del. Laws, c. 178.;
§ 8155. Assessed valuation; lien for taxes on termination of nonprofit use or ownership.
(a) The county board of assessment and the assessment boards of other political subdivisions shall each year establish the assessed value of any property for which exemption is granted pursuant to this subchapter in the same manner as other properties which are taxable are assessed.
(b) In the event that a project granted exemption under this subchapter is ever operated on a profit-making basis or conveyed to a profit-making corporation, organization or other person, or is principally devoted to any purpose other than housing for the elderly as defined in § 8152 of this title, then and in that event, a tax lien shall attach to the land and improvements previously granted tax exemption, in the amount of the taxes which would have been due and owing the county and other political subdivision for all past years, including interest and penalties, if tax exemption had not been granted.
9 Del. C. 1953, § 8155; 55 Del. Laws, c. 178.;
§ 8156. Special assessments in lieu of taxes.
Any church, religious society, charitable corporation or nonprofit organization granted a tax exemption pursuant to this subchapter, shall pay to the county and other political subdivision in which the project is situate, in lieu of taxes, a special assessment in an amount not less than 10% of the gross rentals derived from the project, less the cost of utilities and the cost of providing special social services to the elderly persons residing in the project. This sum shall be divided between the county and other political subdivisions having authority to levy ad valorem taxes on land and improvements in which the project is situate in proportion to their respective tax rates.
9 Del. C. 1953, § 8156; 55 Del. Laws, c. 178.;