IS IT TRUE? Part 2 June 3, 2011 “What About Habitat for Humanity?â€
IS IT TRUE that the City County Observer has discussed the scheme being used with the Front Door Pride program where new houses are held by Hope of Evansville, a 501c-3 non-profit during the time that the properties are being built and a buyer is being sought?…that by doing this the tax liability is eliminated not only during the holding period but that it takes the assessment and taxation processes followed in the State of Indiana up to two years to get these properties back onto the tax rolls?…that this little scheme allows buyers of these homes to benefit financially by paying ZERO real estate taxes for either three or four payment periods depending on the timing of their purchase?…that what is good for one 501c-3 should be good for another 501c-3?…that begs the question “What About Habitat for Humanityâ€?
IS IT TRUE that Habitat for Humanity is a Christian based national non-profit organization that has been granted 501c-3 status by the IRS?…that there are local affiliates all over the country that are formed the same way and that according to the audited financial statement of Habitat for Humanity of Evansville that they are also have been granted 501c-3 non-profit status by the IRS?…that Habitat for Humanity of Evansville is a very transparent organization that has helped many local families attain the American dream of home ownership?…that these families are all required to invest at least 300 hours of sweat equity into their homes and to pay for them in full over a 25 year period?…that Habitat for Humanity is a “hand up†organization as opposed to a “hand out†organization?…that the City County Observer became curious yesterday after several Front Door Pride discussions about whether or not Habitat was being granted special deductions under the category of “other†during the holding period making the transfer to their buyers tax free for two years too?
IS IT TRUE that the Vanderburgh County Assessor’s website comes back with 97 properties when queried with the owner name “Habitat for Humanityâ€?…that a cursory look through the 10 pages of results show a large number of homes and maybe 10% – 20% empty lots titled under ownership by Habitat for Humanity?…that our particular areas of interest are the deductions for taxes and the cap rates associated with the taxation?…that going into this our expectation is that this 501c-3 will be paying no taxes through the same preferential treatment that is granted to Hope of Evansville for the 6 Front Door Pride homes that it is the holding company for?…that the first set of results chosen randomly are as follows:
IS IT TRUE that the home located at 1680 Elliot Street and owned by Habitat is assessed at $28,200?…that there are exactly ZERO deductions of any kind granted to this property?…that the tax cap is set at 2% which is the appropriate tax cap for a for-profit rental property?…that the gross tax liability is $777.28 but that due to the 2% cap the tax liability is capped at $570.82?…that the taxes are current?
IS IT TRUE that the home located at 507 East Riverside and owned by Habitat is assessed at $26,200?…that there are exactly ZERO deductions of any kind granted to this property?…that the tax cap is set at 2% which is the appropriate tax cap for a for-profit rental property?…that the gross tax liability is $722.16 but that due to the 2% cap the tax liability is capped at $530.34?…that the taxes are current?
IS IT TRUE that the home located at 1726 South Morton and owned by Habitat is assessed at $64,800?…that there are exactly ZERO deductions of any kind granted to this property?…that the tax cap is set at 2% which is the appropriate tax cap for a for-profit rental property?…that the gross tax liability is $1,816.40 but that due to the 2% cap the tax liability is capped at $1,342.00?…that the taxes are current?…that this house sold $19,400 in 2006, $40,000 in 2009, and then for $7,000 in January of 2011 but is assessed at $64,800?…that we wonder how that constitutional mandate for market value assessment was applied to this property?...that the current and past Vanderburgh County Assessors have some explaining to do on this one?
IS IT TRUE that we have looked at other properties and have not yet found even one case where a special deduction has been granted to Habitat for Humanity?…that it certainly appears as though that equal protection under the law that we all take for granted is not being followed in Evansville when it comes to taxation?…that for one 501c-3 to get a free ride that gets passed on to a buyer and for another one to be treated like a for profit rental real estate company really begs the question “WHYâ€?
IS IT TRUE that the sources we used to gather this data are the Vanderburgh County Assessors website, the Habitat for Humanity website, and the links to the tax bills for the properties that we have profiled?