(a) Notwithstanding any provision in this chapter to the contrary, any real property determined by the director to be exempt from property taxes under § 8-10.17 shall be exempt from property taxes effective as of the date the application is filed with the director; provided that the initial application for exemption shall be filed with the director within 60 days of the qualification or in the failure thereof by September 30 preceding the tax year for which the exemption is claimed. A copy of the regulatory agreement that has been recorded with the registrar of the bureau of conveyances or filed with the assistant registrar of the land court, whichever applies, shall be filed with the application along with any additional documents determined by the director to be necessary to supplement the application. As used herein, the date of the qualification shall be the earlier of:
(1) The date when the mortgage made by the nonprofit or limited distribution mortgagor and insured under § 202, 221(d)(3), or 236 of the National Housing Act, 12 USC Chapter 13, as amended, is recorded; or
(2) The date the regulatory agreement is recorded with the registrar of the bureau of conveyances or the assistant registrar of the land court of the State, whichever applies.
For a housing project that qualified for an exemption from real property taxation under § 8-10.17 before December 20, 2002,* the first application filed after December 20, 2002* shall be deemed the initial filing under this subsection.
After the initial year for which the real property has qualified for an exemption, a claim for an exemption shall be filed annually on or before September 30, together with a document from the agency regulating the housing project certifying that the housing project continues to be in compliance with the initial regulatory agreements and is in compliance with the applicable low-income rental requirements in the manner provided by applicable law or rule.
(b) In the event property taxes have been paid to the county in advance for real property that subsequently qualifies for the exemption, the director shall refund to the owner that portion of the taxes attributable to and paid for the period after the qualification.
(c) Continued exemption. A claim for a continued exemption may be filed after September 30 but on or before November 15. Such a late filed claim is subject to a nonwaivable late filing penalty of $500, which must be paid at the time of such filing.
(1) Notice by director.
Following the initial year for which real property has qualified for an exemption, if an owner fails to file a claim for continued exemption by the September 30 deadline, the director shall promptly mail a notice to the owner at the owner’s address of record stating that unless a claim for continued exemption, all the necessary documents, and the late filing penalty of $500 are received by the director by November 15 of the same year, the exemption shall be canceled.
(2) Cancellation of continued exemption.
An owner who has been sent a notice under subdivision (1) by the director and who fails to file for a continued exemption by the November 15 deadline or fails to submit the late filing penalty of $500, shall have the exemption canceled and the housing project shall be subject to taxes and penalties pursuant to subdivision (3).
In the event the director finds that the initial or subsequent claim for exemption contains false or fraudulent information, the housing project fails to meet the requirements of § 8-10.17 during the regulated period, or the owner fails to file annually during the regulated period as required under this section, the director shall cancel the exemption retroactive to the date the exemption was first granted pursuant to an initial filing under subsection (a), and the housing project shall be subject to the taxes and penalties determined in subdivision (3).
(3) Back taxes and penalties.
In the event a housing project is subject to taxes and penalties as provided in subdivision (2), the differences in the amount of taxes that were paid and those that would have been due but for the exemption allowed shall be payable, together with interest at 10 percent a year, from the respective dates that these payments would have been due. The taxes and penalties due shall be a paramount lien upon the real property.
(Sec. 8-10.21, R.O. 1978 (1983 Ed.)) (1990 Code, Ch. 8, Art. 10, § 8-10.21) (Am. Ords. 02-68, 16-37)
Editor’s note:
* “December 20, 2002” is substituted for “the effective date of this ordinance.”