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Click here for the full text of this decision FACTS:American Housing Foundation (AHF) is a Community Housing Development Organization (CHDO) that provides low-income housing in Texas. College Station Texas Southgate Village (Southgate Village) operates low-income and very-low income housing in Brazos County. Southgate Village Ltd. owns the Southgate Village apartments. AHF Southgate Village (AHF Southgate) is the sole general partner of Southgate Village Ltd. AHF Southgate is a wholly owned subsidiary of AHF. AHF applied for a tax exemption for the apartments under Texas Tax Code 11.182 for the 2002 tax year. The exemption was denied on the ground that AHF was not the legal owner of the property, since the deeded ownership appeared to be vested in Southgate Village Ltd.; that the exemption only applied to property built after 2001; and that AHF failed to supply appropriate audit information. The Appraisal Review Board denied AHF’s appeal. AHF applied again for the exemption for the 2003 tax year. The first two reasons given in the denial of the 2002 request were given here, too. The review board denied AHF’s appeal. AHF and Southgate Village Ltd. sued the appraisal district for a review of the 2002 and 2003 denials. On competing motions for summary judgment, the trial court ruled for the appraisal district. HOLDING:Affirmed. The court parses 11.182, noting that subsection (e) is the section that extends an exemption to housing projects constructed after 2001. The court points out that the subsection begins with the phrase, “In addition to,” meaning that the requirements of the other still apply. Section 11.182(b)(1) through (4) sets out the definition of what constitutes ownership of the property for which an exemption is applied. To be entitled to a tax exemption for the apartments, AHF would first have t 1. be organized as a CHDO; and 2. own the property for the purpose of building or repairing housing to sell without profit to low-income or moderate-income individuals or families. Even though AHF is a CHDO, AHF does not own the apartments and is not entitled to a tax exemption for the apartments. Southgate Village Ltd. is not entitled to the exemption because it is not a CHDO, the court holds. OPINION:Bill Vance, C.J.; Gray, C.J., Vance and Reyna, JJ.

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