Development Participation with Casa Tierra

PAST and present participation with developers and their housing developments have followed two arrangements:

Managing Member in the Development

-Casa Tierra can participate as a Managing Member along with a percentage of ownership.
-With its involvement as a 501 (c) (3) non-profit housing corporation, the development is eligible to receive sales tax exemptions on materials, services, appliances, etc. during the construction of the project.
-Casa Tierra is recognized by HUD for having “Previous Participation” related to past projects, adding another positive aspect to the non-profit housing corporation’s involvement with the development.
-The development also may be eligible to receive property tax exemptions with the involvement of Casa Tierra as a 501 (c) (3) non-profit housing corporation.
-An agreement between the developer and Casa Tierra is established providing specific terms and an agreed time frame Casa Tierra may exit from participating with the development.

Construction Non-Profit Participation Agreement

-Under the Construction Non-Profit Participation Agreement, Casa Tierra participates with the development as a co-contractor/consultant.
-Actual construction activities are handled by the General Contractor in charge of the development.
-Under the Construction Non-Profit Agreement, Casa Tierra is able to secure sales tax exemptions to be used towards materials, services, appliances, etc.
-A Construction Non-Profit Participation Agreement specifying terms between the developer and Casa Tierra is also established.

Casa Tierra’s participation under either of these options can provide significant cost savings to a development with today’s increased construction costs.  From Casa Tierra’s standpoint, participation provides the non-profit with funding for operations and meeting its mission of providing affordable housing to families and seniors while enhancing the local community.

501 (c) (3) Designation Letters from the IRS, Texas Secretary of State, Texas Comptroller’s Office along with past Legal Opinion Letters can be provided upon request.  In addition, a listing of past and present housing developments Casa Tierra has participated under the above scenarios can also be provided upon request.