As a nonprofit public benefit corporation, HOPE partners with property owners who offer low income housing in compliance-applicable use restrictions.
To become a partner, HOPE must be incorporated as a Managing General Partner or Co-General Partner of the property owner’s corporation to facilitate the application for tax exempt status on those units which meet HUD guidelines. The savings in tax exemptions creates incentive for the property owner to continue to offer low income housing. The compensation that HOPE receives from these property owners is used to provide services to low income persons, seniors, veterans and the disabled.
As the Managing General Partner or Managing Member, HOPE will use its expertise to help navigate the complicated approval process necessary to obtain a property tax exemptions. A brief summary is below.
Obtaining tax exemptions must begin with a filing with the State of California, Board of Equalization (www.boe.ca.gov) Claim for Supplemental Clearance Certificate for a Low Income Housing Property – Welfare Exemption
There must be an annual filing with the Office of the County Assessor for a Welfare Exemption Supplemental Affidavit, Low-Income Housing Property.
- Property must have an “Organizational Clearance Certificate (OOC) Form which must be obtained from the Board of Equalization.
- A verifiable agreement with a public agency or a recorded deed restriction that restricts the project’s use for lower income households as prescribed by section 50053 of the Health and Safety Code. Eligibility based on family household income standards are found in section 214(g) of the California Revenue and Taxation Code
- The property owner must have units available that qualify under “low income” households; or the acquisition, construction, rehabilitation, development or operation of the property is financed with government financing.
- Meet Managing General Partner Requirements
- The MGP/MM must have ‘Material Participation;” in the control, management, and direction of the business
- MGP/MM must be able to provide or provide information about charitable services or benefits available to the residents.
- Each resident must be provided with a copy of the BOE-267-L-A, Lower Income Households, and Family Household Income Reporting Worksheet. Statements are kept with MGP/MM.
- The MGP/MM must qualify for an OCC certificate for Welfare or Veterans Organization Exemption (BOE-277-OCC