{"id":4301,"date":"2026-07-10T11:04:33","date_gmt":"2026-07-10T11:04:33","guid":{"rendered":"https:\/\/durhammovinghub.com\/?p=4301"},"modified":"2026-07-10T11:04:33","modified_gmt":"2026-07-10T11:04:33","slug":"corporate-landlords-get-tax-break-meant-for-nonprofits-nc-delays-closing-loophole","status":"publish","type":"post","link":"https:\/\/durhammovinghub.com\/?p=4301","title":{"rendered":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole"},"content":{"rendered":"

AI-generated summary reviewed by our newsroom.<\/p>\n

Read our AI Policy.<\/a><\/p>\n

Lawmakers in North Carolina agree that a state property tax loophole is costing local governments millions in tax revenue loss, but the legislature has yet to close it. Two state House members say that lobbying of the state Senate has contributed to the holdup.<\/p>\n

Read more Charges upgraded for man accused of injuring LGBTQ+ organizer at Cary Pride event<\/a><\/p>\n

The tax break is called the \u201cBlue Ridge Housing\u201d loophole<\/a>, which allows for-profit businesses to avoid paying property taxes by sharing ownership of a property with a nonprofit. In North Carolina, nonprofit organizations are exempt from paying property taxes.<\/a> However, there is no clear law that states how much of a property must be owned by a nonprofit for it to be considered owned by that nonprofit.<\/p>\n

This means that if a nonprofit owns 1% of a property, a for-profit that owns 99% can claim nonprofit status and be exempt from property taxes. This allows private-equity investors to take majority ownership of property that starts out as affordable housing and raise rents, all while avoiding property tax.<\/p>\n

Five North Carolina counties, among the most urban, have experienced roughly $60 million in annual property tax revenue loss because of the loophole, The News & Observer previously reported. And there\u2019s been a \u201cdramatic\u201d increase in the number of applications for this exemption across the state, according to a report<\/a> from the House Select Committee on Property Tax Reduction and Reform.<\/p>\n

Although budget writers had the opportunity to include a policy to close the loophole in the state budget that passed in early July<\/a>, it was left out. Rep. Erin Par\u00e9, a Holly Springs Republican and budget writer, said that the provision \u201cdidn\u2019t make the cut\u201d during budget negotiations between Senate leader Phil Berger and House Speaker Destin Hall.<\/p>\n

Par\u00e9, who is also a co-chair of the House property tax committee, added that lobbyists representing \u201cprivate sector interests\u201d are raising concerns to senators, which may be giving them pause. A bill to close the loophole<\/a> awaits a vote in the Senate after receiving a unanimous House vote.<\/p>\n

\u201cIt\u2019s a really good bill,\u201d Par\u00e9 told The N&O. \u201cThere\u2019s a lot of support for it I know (in the Senate) as well. Whether there\u2019s still some outstanding questions about it or concerns, and whether that will change … the trajectory of passing the bill in the Senate, remains to be seen.\u201d<\/p>\n

Par\u00e9 said that the House, unlike the Senate, had the advantage of having a committee that researched the topic extensively, which allowed representatives ample time to understand the loophole.<\/p>\n

This loophole, Par\u00e9 said, burdens residents by increasing their property tax responsibilities. The tax exemption, Par\u00e9 said, is intended for \u201clegitimate\u201d affordable housing and not for for-profits.<\/p>\n

Read more Sports cars, \u2018fraud,\u2019 adultery: Bitter court feud over Rep. Tricia Cotham\u2019s dad<\/a><\/p>\n

Rep. Julia Howard, a Mocksville Republican, said the fact that for-profits can exploit this loophole \u201cis just wrong.\u201d Howard, who co-chairs the committee with Par\u00e9, said that she will continue to fight to fix the loophole.<\/p>\n

\u201c(The current loophole) absolutely … makes no sense,\u201d Howard told The N&O. \u201c(For-profits) are playing by the current rules, but the rules are wrong right now.\u201d<\/p>\n

Par\u00e9 and Howard said that questions have been raised about whether for-profit businesses that already have the property tax exemption through the loophole could be exempt if the bill passed. Par\u00e9 said the General Assembly\u2019s legal team determined that that is unconstitutional.<\/p>\n

Howard said that she is not hopeful that the legislature will pass the bill before the end of the current session. Now that the budget has become law, lawmakers are likely to spend less time meeting and voting.<\/p>\n

But Par\u00e9 said that she believes there may be a few opportunities to pass it when lawmakers return to the legislature in late July.<\/p>\n

The loophole gets its name from Blue Ridge Housing of Bakersville LLC, a for-profit company that received the property tax exemption even though it owned 99% of an apartment complex. It shared just 1% ownership with a nonprofit and also used federal housing tax credits and other forms of federal assistance to construct the compex.<\/p>\n

Mitchell County\u2019s tax office overturned the exemption, prompting Blue Ridge Housing to file a lawsuit.<\/p>\n

In 2013, the North Carolina Court of Appeals ruled in Blue Ridge Housing\u2019s favor, stating that the law does not designate how much of a property must be owned by a nonprofit to qualify for the exemption.<\/p>\n

Read more These are the 10 hottest restaurants in Asheville right now to try<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite bipartisan concern, lawmakers left a loophole intact that lets for-profits avoid property tax by sharing nonprofit ownership, causing tax revenue loss.<\/p>\n","protected":false},"author":1,"featured_media":2113,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-read-todays-edition"],"yoast_head":"\nCorporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/durhammovinghub.com\/?p=4301\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub\" \/>\n<meta property=\"og:description\" content=\"Despite bipartisan concern, lawmakers left a loophole intact that lets for-profits avoid property tax by sharing nonprofit ownership, causing tax revenue loss.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/durhammovinghub.com\/?p=4301\" \/>\n<meta property=\"og:site_name\" content=\"Durham Moving Hub\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-10T11:04:33+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/#\\\/schema\\\/person\\\/bf1f081e7f06a3ab66052e5f6015fd85\"},\"headline\":\"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole\",\"datePublished\":\"2026-07-10T11:04:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301\"},\"wordCount\":778,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/durhammovinghub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg\",\"articleSection\":[\"Read today's Edition\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301\",\"url\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301\",\"name\":\"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/durhammovinghub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg\",\"datePublished\":\"2026-07-10T11:04:33+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/#\\\/schema\\\/person\\\/bf1f081e7f06a3ab66052e5f6015fd85\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#primaryimage\",\"url\":\"https:\\\/\\\/durhammovinghub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg\",\"contentUrl\":\"https:\\\/\\\/durhammovinghub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg\",\"width\":1200,\"height\":674,\"caption\":\"An aerial view of the Amberly Community, a subdivision in Cary.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/?p=4301#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/durhammovinghub.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/#website\",\"url\":\"https:\\\/\\\/durhammovinghub.com\\\/\",\"name\":\"Durham Moving Hub\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/durhammovinghub.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/durhammovinghub.com\\\/#\\\/schema\\\/person\\\/bf1f081e7f06a3ab66052e5f6015fd85\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/durhammovinghub.com\"],\"url\":\"https:\\\/\\\/durhammovinghub.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/durhammovinghub.com\/?p=4301","og_locale":"en_US","og_type":"article","og_title":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub","og_description":"Despite bipartisan concern, lawmakers left a loophole intact that lets for-profits avoid property tax by sharing nonprofit ownership, causing tax revenue loss.","og_url":"https:\/\/durhammovinghub.com\/?p=4301","og_site_name":"Durham Moving Hub","article_published_time":"2026-07-10T11:04:33+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/durhammovinghub.com\/?p=4301#article","isPartOf":{"@id":"https:\/\/durhammovinghub.com\/?p=4301"},"author":{"name":"admin","@id":"https:\/\/durhammovinghub.com\/#\/schema\/person\/bf1f081e7f06a3ab66052e5f6015fd85"},"headline":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole","datePublished":"2026-07-10T11:04:33+00:00","mainEntityOfPage":{"@id":"https:\/\/durhammovinghub.com\/?p=4301"},"wordCount":778,"commentCount":0,"image":{"@id":"https:\/\/durhammovinghub.com\/?p=4301#primaryimage"},"thumbnailUrl":"https:\/\/durhammovinghub.com\/wp-content\/uploads\/2026\/06\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg","articleSection":["Read today's Edition"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/durhammovinghub.com\/?p=4301#respond"]}]},{"@type":"WebPage","@id":"https:\/\/durhammovinghub.com\/?p=4301","url":"https:\/\/durhammovinghub.com\/?p=4301","name":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole - Durham Moving Hub","isPartOf":{"@id":"https:\/\/durhammovinghub.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/durhammovinghub.com\/?p=4301#primaryimage"},"image":{"@id":"https:\/\/durhammovinghub.com\/?p=4301#primaryimage"},"thumbnailUrl":"https:\/\/durhammovinghub.com\/wp-content\/uploads\/2026\/06\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg","datePublished":"2026-07-10T11:04:33+00:00","author":{"@id":"https:\/\/durhammovinghub.com\/#\/schema\/person\/bf1f081e7f06a3ab66052e5f6015fd85"},"breadcrumb":{"@id":"https:\/\/durhammovinghub.com\/?p=4301#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/durhammovinghub.com\/?p=4301"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/durhammovinghub.com\/?p=4301#primaryimage","url":"https:\/\/durhammovinghub.com\/wp-content\/uploads\/2026\/06\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg","contentUrl":"https:\/\/durhammovinghub.com\/wp-content\/uploads\/2026\/06\/bdb974402fa83dd6d2e8c61c18fd65d5.jpg","width":1200,"height":674,"caption":"An aerial view of the Amberly Community, a subdivision in Cary."},{"@type":"BreadcrumbList","@id":"https:\/\/durhammovinghub.com\/?p=4301#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/durhammovinghub.com\/"},{"@type":"ListItem","position":2,"name":"Corporate landlords get tax break meant for nonprofits. NC delays closing loophole"}]},{"@type":"WebSite","@id":"https:\/\/durhammovinghub.com\/#website","url":"https:\/\/durhammovinghub.com\/","name":"Durham Moving Hub","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/durhammovinghub.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/durhammovinghub.com\/#\/schema\/person\/bf1f081e7f06a3ab66052e5f6015fd85","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/durhammovinghub.com"],"url":"https:\/\/durhammovinghub.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/posts\/4301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4301"}],"version-history":[{"count":0,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/posts\/4301\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=\/wp\/v2\/media\/2113"}],"wp:attachment":[{"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/durhammovinghub.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}