Mixed-Use Housing Is Exempt

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A panel of a Commonwealth Court concluded that a mixed-use housing project owned by municipality was exempt from real estate tax. Reading Housing Authority v. Board of Assessment Appeals of Berks County, No. 1937 C.D. 2013 (Pa. Commw. Nov. 12, 2014). The Reading Housing Authority owned and operated a mixed-use housing project known as a 20-80 project. Twenty percent of the units were set aside for low income persons. The balance were rented at commercial rates. Mixed-use projects were expressly authorized by a recent amendment to Pennsylvania’s Housing Authority Law. 35 P.S. § 1543(1.1). Such projects were permitted because the General Assembly concluded that mixed-use projects were more conducive to a stable and successful community than purely low income projects. Since the mixed-use project was expressly authorized as a purpose of the Housing Authority, it was entitled to exemption. The court distinguished Southeast Pennsylvania Transportation Authority v. Board of Revision of Taxes, 777 A.2d 1234 (Pa. Commw. 2001), where property owned by SEPTA and leased to commercial tenants was not exempt, because the renting of commercial properties was not within the general purposes of the agency.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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