Council Raps Tax Break For Housing Cooperative

r uO. ,i i Questioning the propriety of state law which exempts low ind moderate income housing levelopments írom local proprty taxation, the City Council ast night deferred action on eximpting Colonial Square CoopTative under this law. The law, effective this year, vould exempt Colonial Square Cooperative on the city's southeast side from local property taxes. In lieu of the property tax, the cooperative would pay 10 per cent of rentáis. This y e a r the cooperative would have paid $105,000 in property taxes. Ten per cent of rentáis will amount to about $40,000. The city's share of this tax would be about $36,000 on property and about $10,000 on rentáis, a loss of $26,000. City A 1 1 o r n e y Peter W. ' Forsythe said the granting oi the tax exemption is mandatory. City Administrator Guy C. Larcom Jr. also said the law is fairly clear, but added it may be changed this year. Allyn Kantor, an attorney representing the cooperative, said the tax reduction would be applied to rents paid by tenants. This would result in an average reduction in rents per apartment of about $200 anjnually, he said. Fourth Ward Councilman 'Robert J. Jagitsch said the state had, without consulting cities, "denied us of some previouslv existine revenues. Thisl is more than just an irritation."! He moved that action on the I matter be delayed for fourl weeks. The council will meet with I state representatives in 1 sing Feb. 22 and this will bel one of the items up for 1 sion. Kantor said that once the cityl determines the cooperative is I eligible for the exemption thej council has no discretion. "Itl is not up to the council to 1 termine if the law is proper," he said. Mayor Wendell E. Hulcher said citizens of the city have a "bïg heart" when it comes to sÜbsidizing low - income families, but said citizens would not be happy in providing subsidies ïpt "moderate" income individuáis. "j-'jagitsch commented that perlötis living in the cooperative could be above the maximum income levéis as set forth by j the federal government for 1 ccupancy "and still be exempted."