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Apartment creates issue of first impression

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In an issue of first impression, the Indiana Tax Court decided housing owned by a non-profit that receives governmental subsidies to rent to low- and moderate-income people at below-market rates is not property used for a charitable purpose.

At issue in Jamestown Homes of Mishawaka, Inc. v. St. Joseph County Assessor,  No. 49T10-0802-TA-17, is whether the Indiana Board of Tax Review erred in denying Jamestown Homes a property tax exemption for the 2005 tax year by ruling Jamestown's apartment complex didn't qualify for the charitable purposes exemption provided in Indiana Code Section 6-1.1-10-16.

Jamestown is a non-profit corporation formed in 1965 to provide housing based on Section 221(d)(3) of Title II of the National Housing Act. Under the program, the federal government insured and subsidized low-interest loans to private developers that agreed to rent to people at certain income levels and charge rents that would cover operating costs and debt service only. Jamestown was also allowed to evict tenants who don't pay rent and charge late fees and security deposits.

The apartments were built in 1970, but Jamestown didn't apply for the property tax exemption until the 2005 tax year. The St. Joseph County Property Tax Assessment Board of Appeals denied the application; the Indiana Board of Tax Review affirmed. The board found Jamestown's apartments weren't rented to low- and moderate-income people for any kind of charitable purpose but because it was a condition of its agreement with the federal government. It also ruled the government was shouldering the financial burden of providing the low-cost housing.

On appeal, Jamestown argued it met the burden of proving its property is entitled to the tax exemption, saying it performed a service that the federal, state, and local government would have an obligation to do if it weren't for Jamestown. It also provides affordable housing with no expectation of financial gain.

Because this is an issue of first impression in Indiana, Judge Thomas Fisher looked to other courts for their rulings and adopted the reasoning provided in the New Mexico case Mountain View Homes, Inc. v. State Tax Commission, 427 P.2d 13 (N.M. 1967). That case was based on a similar situation and exemption provision as in the instant case.

Using the ruling from Mountain View, the Indiana Tax Court affirmed the Indiana Tax Review Board's final decision. There's no evidence any welfare clients live in Jamestown's apartments nor is there evidence tenants can continue to live there when they can't pay their rent, wrote Judge Fisher. There's no evidence Jamestown provided good fellowship intended to improve the spirits of its tenants nor is there evidence showing Jamestown has lessened the burden of government in meeting the need for affordable housing. That need is ultimately being met by the government through its mortgage insurance and interest subsidy, wrote the judge.

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  1. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  2. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  3. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  4. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

  5. Mr. Foltz: Your comment that the ACLU is "one of the most wicked and evil organizations in existence today" clearly shows you have no real understanding of what the ACLU does for Americans. The fact that the state is paying out so much in legal fees to the ACLU is clear evidence the ACLU is doing something right, defending all of us from laws that are unconstitutional. The ACLU is the single largest advocacy group for the US Constitution. Every single citizen of the United States owes some level of debt to the ACLU for defending our rights.

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