Fill - Free fillable 11-1825 Fill 191209 144518 PDF form

GENERAL INSTRUCTIONS: This application is for use in claiming exemptions pursuant to Tax Code §11.1825 and pre-acquisition, preliminary determina-

tions of qualication for such exemptions pursuant to Tax Code §11.436(c). You must furnish all information and documentation required by the application.

EXEMPTION APPLICATIONS: Generally, the completed application, with all required documentation, must be filed between January 1 and no later than

April 30 of the year for exemption is requested. However, pursuant to Tax Code §11.436(a), an organization that acquires property that qualifies for

an exemption under Tax Code §11.1825 may apply for the exemption for the year of acquisition not later than the 30th day after the date the organization

acquires the property, and the deadline provided by Tax Code §11.43(d) does not apply to the application for that year. If an application led pursuant to Tax

Code §11.436(a) is granted, the exemption for that year applies only to the portion of the year in which the property qualies for the exemption, as provided

by Tax Code §26.111. A new application must be led each year an exemption is claimed.

PRELIMINARY DETERMINATION APPLICATIONS: Pursuant to Tax Code §11.436(c), to facilitate the nancing associated with the acquisition of a property,

an organization, before acquiring the property, may request from the chief appraiser of the appraisal district established for the county in which the property

is located a preliminary determination of whether the property would qualify for an exemption under Tax Code §11.1825 if acquired by the organization. The

request must include the information that would be included in an application for an exemption for the property under Tax Code §11.1825. Not later than the

45th day after the date a request is submitted under Tax Code §11.436(c), the chief appraiser shall issue a written preliminary determination for the property

included in the request. A preliminary determination does not affect the granting of an exemption under Section 11.1825.

OTHER IMPORTANT INFORMATION

Pursuant to Tax Code §11.45, after considering this application and all relevant information, the chief appraiser may request additional information from

you. You must provide the additional information within 30 days of the request or the application is denied. For good cause shown, the chief appraiser may

extend the deadline for furnishing the additional information by written order for a single period not to exceed 15 days.



Exemption



Preliminary Determination

STEP 2: State the Year for Which Exemption or Preliminary Determination is Sought

__________________________________________________ _______________________________________________

Exemption Preliminary Determination

STEP 3: Provide Name and Mailing Address of Property Owner and Identity of Person Preparing Application

___________________________________________________________________________________________________

Name of Property Owner

___________________________________________________________________________________________________

Mailing Address

____________________________________________________________________________ _____________________

City, State, ZIP Code Phone (area code and number)

Property Owner is a (check one):



Partnership



Corporation



Other (specify): __________________________________________________________

________________________________________ ___________________________ ____________________________

Name of Person Preparing this Application Title Driver’s License, Personal I.D. Certicate,

or Social Security Number*

Application for Constructing or Rehabilitating

Low-Income Housing Property Tax

Exemption for _______

Harris County Appraisal District

Exemption Center

13013 Northwest Fwy.

P. O. Box 922012

Houston, TX. 77292-2012

(713) 957-7800

11.1825 (12/2019)

STEP 1: State Whether an Exemption or Preliminary Determination is Sought

If this application is for an exemption from ad valorem taxation of property owned by a charitable

organization with a federal tax identication number, that number may be provided here in lieu of

a driver’s license number, personal identication certicate number, or social security number: ...........

____________________________

Unless the applicant is a charitable organization with a federal tax identication number, the applicant’s driver’s license number, personal identication certicate number,

or social security account number is required. Pursuant to Tax Code Section 11.48(a), a driver’s license number, personal identication certicate number, or social security

account number provided in an application for an exemption led with a chief appraiser is condential and not open to public inspection. The information may not be disclosed

to anyone other than an employee of the appraisal office who appraises property, except as authorized by Tax Code Section 11.48(b). If the applicant is a charitable organization

with a federal tax identication number, the applicant may provide the organization’s federal tax identication number in lieu of a driver’s license number, personal identication

certicate number, or social security account number.

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STEP 4: Identify the Property

1. Provide the property’s legal description.

2. What is the appraisal district account number (if known)? ..................................... ____________________________

3. What is the property address? ____________________________________________________________________________

Street

____________________________________________________________________________

City, State, ZIP Code

To receive an exemption under Tax Code §11.1825, either the property owner or one of two other entities must meet the requirements set forth in Tax Code

§11.1825(b).

Pursuant to Tax Code §11.1825(c), property may qualify for an exemption under Tax Code §11.1825 if the property owner does not meet the requirements of

Tax Code §11.1825(b) if the property otherwise qualies for the exemption and the owner is:

(1) a limited partnership of which an organization that meets the requirements of Tax Code §11.1825(b) controls 100 percent of the general partner

interest, is organized under the laws of Texas, and has its principal place of business in Texas; or

(2) an entity the parent of which is an organization that meets the requirements of Tax Code §11.1825(b), is organized under the laws of Texas, and has

its principal place of business in Texas.

For purposes of this application, the term “qualifying organization” refers to the organization (property owner or other entity described by Tax

Code §11.1825(c)) that meets the Tax Code §11.1825(b) requirements:

(1) for at least the preceding three years, the organization:

(A) has been exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as amended, by being listed as an exempt

entity under Section 501(c)(3) of that code;

(B) has met the requirements of a charitable organization provided by Tax Code §11.18(e) and (f); and

(2) a majority of the members of the board of directors of the organization have their principal place of residence in this state;

(3) at least two of the positions on the board of directors of the organization must be reserved for and held by:

(A) an individual of low income as dened by Section 2306.004, Government Code, whose principal place of residence is located in this state;

(B) an individual whose residence is located in an economically disadvantaged census tract as dened by Section 783.009(b), Government Code,

in this state; or

(4) the organization must have a formal policy containing procedures for giving notice to and receiving advice from low-income households residing in the

county in which a housing project is located regarding the design, siting, development, and management of affordable housing projects.

Does the property owner identied in Step 3, above, meet the requirements of Tax Code §11.1825(b)?

...........................



Yes



Note: If you answered “yes,” the property owner is the qualifying organization for purposes of the remainder of this application and you may skip

to Step 6. If you answered “no,” the property owner is not the qualifying organization for purposes of the remainder of this application and you

must provide the following information before proceeding to Step 6.

Application For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

STEP 5: Identify Qualifying Organization

If the property owner identied in Step 3, above, does not meet the requirements of Tax Code §11.1825(b), please identify the qualifying organization

pursuant to Tax Code §11.1825(c):

___________________________________________________________________________________________________

Name of Qualifying Organization

___________________________________________________________________________________________________

Mailing Address

____________________________________________________________________________ ____________________

City, State, ZIP Code Phone (area code and number)

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11.1825 (05/2016)

Application For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

STEP 5: Identify Qualifying Organization (continued)

Is the qualifying organization identied above organized under the laws of Texas? ........................................



Yes



Does the qualifying organization identied above have its principal place of business in Texas? .............................



Yes



Pursuant to Tax Code §11.1825(c)(1), is the property owner a limited partnership of which the qualifying organization

identied above controls 100 percent of the general partner interest? ..................................................



Yes



If yes, please attach organizational documents supporting your answer.

Pursuant to Tax Code §11.1825(c)(2), is the qualifying organization the parent of the property owner?

........................



Yes



If yes, please attach organizational documents supporting your answer.

STEP 6: Provide Information Regarding Qualifying Organization (identified in Step 5)

1. Is the organization engaged primarily in public charitable functions? ................................................



Yes



If yes, using an attachment, describe the organization’s activities in a narrative. The narrative description of activities should be

thorough, accurate and include date-specic references to the tax year for which the exemption is sought. You may also attach

representative copies of newsletters, brochures or similar documents for supporting details to this narrative.

2. Is the organization organized exclusively to perform religious, charitable, scientic, literary or educational purposes? .........



Yes



If yes, attach copies of organizational documents supporting your answer.

STEP 7: Answer the Following Questions About the Organization

For the preceding three years (note years) ___________________, answer these questions:

1. Has the organization been exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986,

as amended, as an exempt entity under Section 501(c)(3) of that Code? ...........................................



Yes



2. Has the organization operated, or its charter permit to operate, in a manner that permits the accrual of prots or distribution

of any form of private gain? If yes, explain on a separate attached page. ...........................................



Yes



3. Has the organization used its assets in providing low-income housing? ............................................



Yes



4. In the past year has the organization loaned funds to, borrowed funds from, sold property to or bought property from a shareholder,

director or member of the organization, or has a shareholder or member sold his interest in the organization for a prot? .....



Yes



If “Yes,” attach a description of each transaction. For sales, give buyer, seller, price paid, value of the property sold and

date of sale. For loans, give lender, borrower, amount borrowed, interest rate and term of loan. Attach a copy of note, if any.

5. Attach a list of salaries and other compensation for services paid in the last year. List any funds distributed to members,

shareholders or directors in the last year. In each case, give recipient’s name, type of service rendered or reason for

payment and amounts paid.

About the board of directors, answer these questions:

1. Does a majority of the members of the organization’s board of directors of the organization have their principal place of

residence in Texas? ....................................................................................



Yes



Attach a list of the board members and their principal places of residence.

2. Do two or more directors on the board whose principal place of residence is located in Texas meet one of the following

requirements: an individual of low income as dened by Section 2306.004, Government Code; or an individual whose

residence is located in an economically disadvantaged census tract in Texas, as dened by Section 783.009(b), Government

Code; or is a representative appointed by a neighborhood organization in Texas that represents low-income households?

....



Yes



Note on attached list of board members those directors that meet one of these provisions, and indicate which provisions.

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11.1825 (05/2016)

STEP 7: Answer the Following Questions About the Organization (continued)

About policies, bylaws or charter, answer these questions:

1. Does the organization have a formal policy containing procedures for giving notice to and receiving advice from low-income

households residing in the county in which a housing project is located regarding the design, siting, development and

management of affordable housing projects?

..............................................................



Yes



If “Yes,” attach a copy of the formal policy.

2. Does the organization perform, or does its charter permit it to perform, any functions other than those of providing

low-income housing? ................................................................................



Yes



If “Yes,” attach a statement describing the other functions in detail.

3. Do the by-laws or charter direct that on the discontinuance of the organization the organization’s assets are to be

transferred to the State of Texas, to the United States, or to an educational, religious, charitable or other similar

organization that is qualied for exemption under Sec. 501(c)(3), Internal Revenue Code, as amended?

...............



Yes



If “Yes,” give the page and paragraph numbers. ..................................................... Page ______ Paragraph ______

If “No,” do these documents direct that on discontinuance of the organization the organization’s assets are to be transferred

to members who have promised in their membership applications to immediately transfer them to the State of Texas, to the

United States, or to an educational, religious, charitable or other similar organization that is qualied for exemption under

Sec. 501(c)(3), Internal Revenue Code, as amended?

.......................................................



Yes



If “Yes,” give the page and paragraph numbers. ..................................................... Page ______ Paragraph ______

If “Yes,” was the two-step transfer required for the organization to qualify for exemption under Sec. 501(c)(12),

Internal Revenue Code, as amended? ...................................................................



Yes



STEP 8: Provide Information About the Use of the Property

1. Does the organization currently rent or sell or plan to rent or sell dwelling units in this building to individuals or families?

If so, attach rent schedule. ..............................................................................



Rent



Sell

2. Questions regarding renting dwelling units:

Do/will the individuals and families have a median income that is not more than 60 percent of either the area or statewide

median family income? (Complete A or B):

..................................................................



Yes



A. Area median family income for the household’s place of residence, as adjusted for family size and as established

by the United States Department of Housing and Urban Development, which is

.............................. $ ______________,



B. Statewide area median family income, as adjusted for family size and as established by the United States

Department of Housing and Urban Development, which is

.............................................. $ ______________.

What is the annual total of the monthly rent charged or to be charged for each dwelling unit in this building that is

reserved for an individual or family?

....................................................................... $ ___________ /year

Will the organization be renting or offering to rent the applicable square footage of dwelling units in this building to

qualied individuals and families by the third anniversary of the date the organization acquired this property? .............



Yes



3. Questions regarding selling dwelling units:

Do/will the individuals and families have a median income that is below either the area or statewide median family

income? (Complete A or B): .............................................................................



Yes



A. Area median family income for the household’s place of residence, as adjusted for family size and as established

by the United States Department of Housing and Urban Development, which is

.............................. $ ______________,



B. Statewide area median family income, as adjusted for family size and as established by the United States

Department of Housing and Urban Development, which is

.............................................. $ ______________.

4. How many dwelling units does/will the above described property have? ........................................... ___________ units

5. What percentage of the total square footage of the dwelling units in this building described above are/will be reserved for

individuals or families noted in question No. 1 above? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

_____________%

Application For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

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age 5

11.1825 (

05/2016)

Application For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

STEP 9: Provide Information Regarding Audit

Pursuant to Tax Code §11.1826, property may not be exempted under Tax Code §11.1825 for a tax year unless the organization owning or controlling the

owner of the property has an audit prepared by an independent auditor covering the organization’s most recent scal year.

The audit must include an opinion on whether:

(1) the nancial statements of the organization present fairly, in all material respects and in conformity with generally accepted accounting principles, the

nancial position, changes in net assets, and cash ows of the organization; and

(2) the organization has complied with all of the terms and conditions of the exemption under Tax Code §11.1825.

Not later than the 180th day after the last day of the organization’s most recent scal year, the organization must deliver a copy of the audit to the Texas

Department of Housing and Community Affairs and the chief appraiser of the appraisal district in which the property is located.

If the property contains not more than 36 dwelling units, the organization may deliver to the Texas Department of Housing and Community Affairs and the

chief appraiser a detailed report and certication as an alternative to an audit.

1. Did the organization timely deliver the required audit or report and certication, as applicable, to the Texas Department

of Housing and Community Affairs? .........................................................................



Yes



If no, attach a statement explaining your answer.

2. Did the organization timely deliver the required audit or report and certication, as applicable, to the appraisal district? ........



Yes



If no, attach a statement explaining your answer.

STEP 10: Provide Property Specific Information

If the property is under construction or rehabilitation:

• Attach a Schedule A (CONSTRUCTING) form for each parcel of land and each building of real property to be exempt for constructing low-income housing.

• Attach a Schedule B (REHABILITATING) form for each parcel of land and building to be exempt for rehabilitating low-income housing.

If the property’s construction or rehabilitation is complete and this application is led annually as required by Tax Code Section 11.43(b) to maintain a previously

granted exemption, skip to Step 11.

STEP 11: Read, Sign, and Date

By signing this application, you certify that the information provided is true and correct to the best of your knowledge and belief.

___________________________________________________________________________________________________

On Behalf of (name of property owner)

__________________________________________________________ ______________________________________

Authorized Signature Date

__________________________________________________________ ______________________________________

Printed Name of Person Authorized to File Application Title

If you make a false statement on this form, you could be found guilty of a Class A misdemeanor or a state jail felony under Section 37.10, Penal

Code.

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11.1825 (05/2016)

Page 5

11.1825 (05/2016)

Schedule A: Constructing Low-Income Housing

Complete one Schedule A form for EACH land parcel of improved (with building) and unimproved real property qualied for exemption. Attach all completed

schedules to your application for exemption.

___________________________________________________________________________________________________

Name of Property Owner

___________________________________________________________________________________________________

Property Address

___________________________________________________________________________________________________

City, State, ZIP Code

___________________________________________________________________________________________________

Describe the Primary Use of the Property

Date of acquisition of property: _____/_____/_____ Is this property reasonably necessary for operation of the organization?



Yes



Answer These Questions About the Property Listed Above:

If this is a preliminary determination of exemption, when the nal application is led is

this property expected to be under “active construction” or “physical preparation?” ...........



Active Construction



Physical Preparation

If this is a nal determination of exemption, is this property under “active construction” or

“physical preparation?”

..........................................................



Active Construction



Physical Preparation

If “active construction,” when will construction be completed?

................................ _____/_____/_____

If “physical preparation,” what has been done?

“Physical preparation” is when the organization has engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement

work necessary for constructing the project or has conducted an environmental or land use study for construction of the project.

pplication For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

Page 6

chedule A

11.1825 (05/2016)

Application For Constructing or Rehabilitating Low-Income Housing Property Tax Exemption

Schedule B: Rehabilitating Buildings for Low-Income Housing

Complete one Schedule B form for EACH building and land qualied for exemption. Attach all completed schedules to your application for exemption.

___________________________________________________________________________________________________

Name of Property Owner

____________________________________________________________________ ____________________________

Property Address Building

___________________________________________________________________________________________________

City, State, ZIP Code

___________________________________________________________________________________________________

Describe the Primary Use of the Property

Date of acquisition of property: _____/_____/_____ Is this property reasonably necessary for operation of the organization?



Yes



Answer These Questions About the Property Listed Above:

1. When did actual rehabilitation of this property begin, or when is it expected to begin? .................................... ____/____/____

2. When will rehabilitation of this property be completed? ............................................................... ____/____/____

3. When was the original construction of this housing project completed? ................................................. ____/____/____

4. If the organization acquired this property from another person/organization, how long did the person/organization

own the property?

................................................................................................ _________ years

5. Has the organization spent or does it intend to spend the greater of: (check one)



$5,000 or



amount required by the nancial lender for each dwelling unit in the project for the rehabilitation

of this property? .....................................................................



Yes



6. Does the organization maintain a reserve fund for replacements? ......................................................



Yes



In what amount:



amount required by the nancial lender for each dwelling unit in the project or



$300 for each dwelling unit in the project or



$________________ amount for each dwelling unit in the project adjusted for cost-of-living (for tax years 2005 or later)

Has the organization made withdrawals from the reserve? ............................................................



Yes



If “Yes,” was it: (check one)



authorized by the nancial lender or



to pay the cost of capital improvements needed to maintain habitability under the Minimum Property Standards of the

U. S. Department of Housing and Urban Development. “Capital improvement” is a property improvement that has a depreciable

life of at least ve years, excluding typical “make ready” expenses such as plaster repair, interior paint, or oor coverings.

Page 7

hedule B

11.1825 (05/2016

)

Attach a written statement prepared by a certified public accountant stating what the organization has spent or a copy of

the development budget to verify the intent to spend the requisite amount.

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