House Bill 23-1184 created § 39-3-127.7, C.R.S. which allows for exemption of real property owned by community land trusts and nonprofit affordable homeownership developers and held for the purpose of creating affordable housing for qualifying homeowners.
The change affects taxes due beginning in 2025. Applicants can apply beginning January 1, 2024.
Who Will Qualify
Community land trusts and nonprofit affordable homeownership developers holding land for the purpose of creating and preserving affordable housing.
- The owner must be organized primarily to provide for-sale affordable housing units to low-to-middle income households for use as a primary residence.
- In addition to the property being held by a community land trust or nonprofit affordable homeownership developer, the property must be split into a parcel separate from the improvements built onto it, and then leased to the owner of the improvements as an affordable homeownership property.
- The property is restricted by a deed that limits the property’s resale price, requires a long-term land lease with a community land trust or nonprofit affordable homeownership developer, or imposes any other restriction such that it can only be purchased by a qualifying household, a community land trust or a nonprofit affordable housing developer.
The improvements atop the real property are not exempt from taxation.
Should the property be sold, donated, or leased so that the real property no longer qualifies as an affordable homeownership property, the community land trust or nonprofit affordable homeownership developer is liable for taxes both when the property no longer qualified as an affordable homeownership property and when the property had been exempt as an affordable homeownership property.
Please contact the Exemptions section at (303) 864-7780 if you have further questions.