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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS ACTION AGEND <br /> ACTION AGENDA ITEM ABSTRACT ITEM NO. <br /> ;!. <br /> MEETING DATE November TS, 1983 <br /> SUBJECT: Interfaith Council For Social Services <br /> DEPARTMENT: Tax Supervisor 1 PUBLIC HEARING: YES x NO <br /> . . <br /> ATTACHMENT(S): INFORMATION CONTACT: Kermit Lloyd <br /> Yes PHONE NUMBERS: HILLSBOROUGH - 732-8181 <br /> HILLSBOROUGH - 732-9361 <br /> CHAPEL HILL - 967-9251 <br /> MEBANE - 227-2031 <br /> DURHAM - 688-7331 <br /> PURPOSE: For the Board to consider a request from the Interfaith Council for Social <br /> Services and Community Housing Alternatives, Inc., to have the Board appro <br /> priate $526.73 to cover Community Housing Alternatives, inc., 1983 pro-rat-d <br /> share' of property taxes on property to house the Adelaide Walters Apartmen.s, <br /> an elderly apartment complex in Chapel Hill, <br /> NEED: On July 22, 1983, Community Housing Alternatives, Inc., a private non-prof t <br /> corporation (grantee), purchased two tracts of land from a private individ al <br /> (grantor) to construct an apartment complex for the elderly. <br /> In that the grantor was the owner of record on January 1, 1983, the granto <br /> according to the Machinery Act is the party liable for payment of taxes fo <br /> 1983. However, it was agreed by both parties to the sale that the grantor <br /> would pay the taxes from January I-through July 22 and the grantee from <br /> July 23 - December 31. It was assumed by the grantee that since the grant:a <br /> had kivate non-profit corporation status, it would be relieved of its <br /> liability to pay its pro-rated share. It was later discovered by the graniee <br /> that this was not the case. <br /> IMPACT: The County cannot release the grantee of its tax liability because the <br /> grantee is not the owner of record on January 1 and therefore it cannot be <br /> released of a liability it has never incurred. Releases can only be made <br /> where there is a clerical error, illegal tax or a tax levied for an illegal <br /> purpose (G.S. 105-381) <br /> RECOMMENDATION(S): <br /> Disapproval because (1) the request does not meet the release requirements <br /> and (2)1 to appropriate funds to a private entity to assist it in the payment <br /> of its taxes would be a precedent-setting action. <br />