If you would like to donate property:

Do you have property in Lawrence that you would like to see become part of the solution to the scarcity of affordable housing? Whether it is part of an inheritance, a second residence that you no longer need, or a home in need of rehabilitation that you are unable to maintain... Consider donating all or part of your land asset to help solve the problem of affordable housing in a meaningful, enduring way, and to receive tax benefits. Be assured that your donation will continue to help others in the community through our model of affordable resale.

To donate your property, you will need a philanthropy title report and agree to an independent appraisal and mechanical inspection.

The best way to begin the process of donating land is to contact TTH staff at 842-5494. However, this brief explanation will hopefully prepare you for this process and give you an idea of tax benefits you may receive. Note: none of this is meant as legal advice and you are strongly encouraged to consult with a tax attorney as soon as possible. There are different ways of donating property to TTH, and below is an outline of some of your options and is not necessarily all-inclusive.

Donation of Land:

The appraised land value should be eligible for charitable income tax deductions and free you from capital gains taxes, but rely on your legal counsel for the most up to date information. TTH will pay for the necessary fair market appraisal. If the land donation includes a structure, TTH will pay for the necessary mechanical inspection. The appraisal and inspection will come before any official agreement is reached.

Selling House and/or Land at Reduced Price:

Your tax deduction will most likely reflect the difference between the appraisal value and the price you sell it for, but consult with your legal counsel for the most up to date information. After an appraisal and mechanical inspection of any structures on the property, then TTH will discuss the possibility of a sale. An additional benefit of this type of donation is that you will not need to pay a sales commission! The sales price must be reduced enough for TTH to create an affordable housing opportunity with the property, whether through new construction on vacant property, demolition of a condemned structure and new construction on the land, or rehabilitation of a structure that can be saved.

Rehabilitation in Exchange for Deed:

This type of donation may work for you if you wish to stay in a home that needs repairs that you cannot afford. In this arrangement, you deed the property to TTH but reserve the right to use it during your lifetime. This should create an immediate income tax deduction and a federal estate tax deduction - consult with a tax lawyer for the most up to date information. In addition, TTH may agree to pay for the necessary rehabilitation in exchange for the deed. When you move on to another residence or pass away, the house will be sold to an income-eligible buyer as part of the Lawrence Community Housing Trust Program.

 

 

 

Tenants to Homeowners, Inc.

The Lawrence Community Housing Trust