HB2525

HB2525 adds an alternative way for qualifying charitable organizations providing housing and related services to people 62 or older to qualify for a property-tax exemption. Under the new route, an organization must provide charitable housing and services worth at least 4% of its net resident revenue. It must also have existed for at least 20 years, or be under common control with an organization that has existed that long and performs a listed charitable function. This is an exemption for qualifying organization-owned property, not a new exemption on every senior’s home. Final law, Sections 1–2.

The new route applies both to the permanent senior-housing category in Section 11.18(d)(13) and to the retirement-community category in (d)(19). The latter still requires independent living, assisted living and nursing services on a single campus. Existing alternatives remain: providing the covered housing without regard to residents’ ability to pay, and, for the retirement-community category, providing charitable care to its residents worth at least 4% of the community’s combined net resident revenue. The new organization-wide test is an additional choice, not a replacement of that existing community-based test. The 20-year/common-control condition is attached to the new choices, not all existing senior-housing exemption routes. Final law, Section 1.

“Charitable housing and services” covers housing and services provided by a charitable organization to a person 62 or older in financial need. Housing includes independent living, assisted living and nursing facilities. Listed services include ministerial, indigent health-care, social, health and educational services, and donations to organizations qualifying under the two senior-housing categories. The act expressly aligns the determination of net resident revenue with the hospital net-patient-revenue measure, alongside the existing hospital-based charity-care measures. The threshold is not 4% of property value or a requirement that 4% of units be free. Final law, Section 2; underlying accounting provisions.

Other charitable-organization and property-use requirements remain, including nonprofit operation, restrictions on private gain and dedication of assets to charitable purposes. The changes apply beginning with the 2026 property-tax year; the act does not retroactively exempt 2025 property. Existing exemption framework; final law, Sections 3–4.