Section 214.15 Of Article 1. Taxable And Exempt Property From California Revenue And Taxation Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 1.
214.15
. (a) Property is within the exemption provided by Sections 4
and 5 of Article XIII of the California Constitution if that
property is owned and operated by a nonprofit corporation, otherwise
qualifying for exemption under Section 214, that is organized and
operated for the specific and primary purpose of building and
rehabilitating single or multifamily residences for sale at cost to
low-income families, with financing in the form of a zero interest
rate loan and without regard to religion, race, national origin, or
the sex of the head of household.
(b) (1) In the case of property not previously designated as open
space, the exemption specified by subdivision (a) may not be denied
to a property on the basis that the property does not currently
include a single or multifamily residence as described in that
subdivision, or a single or multifamily residence as so described
that is in the course of construction.
(2) With regard to paragraph (1), the Legislature finds and
declares all of the following:
(A) The exempt activities of a nonprofit corporation as described
in subdivision (a) qualitatively differ from the exempt activities of
other nonprofit entities that provide housing in that the exempt
purpose of a nonprofit corporation as described in subdivision (a) is
not to own and operate a housing project on an ongoing basis, but is
instead to make housing, and the land reasonably necessary for the
use of that housing, available for prompt sale to low-income
residents.
(B) In light of this distinction, the holding of real property by
a nonprofit corporation as described in subdivision (a), for the
future construction on that property of a single or multifamily
residence as described in that same subdivision, is central to that
corporation's exempt purposes and activities.
(C) In light of the factors set forth in subparagraphs (A) and
(B), the holding of real property by a nonprofit corporation
described in subdivision (a), for the future construction on that
property of a single or multifamily residence as described in that
same subdivision, constitutes the exclusive use of that property for
a charitable purpose within the meaning of subdivision (b) of Section
4 of Article XIII of the California Constitution.