Transitioning Parsonage to Low-income Housing
August 13, 2018
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Our church is exploring the possibility of transitioning the church parsonage to low-income housing for people in our community. Have any of you ever gone through a transition like this? Is there anything we should keep in mind as we discern this as a church or as we make the transition? (Our family currently lives in the parsonage but we are able to get other housing and happy to do so if this works out). Thank you very much!
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Well, the first thing that comes to mind -- and I live in Canada -- is that the parsonage would lose it tax-free status. In Canada, the church does not pay taxes on church-owned property such as a parsonage. But if you're renting it out and receiving income, my hunch is that you'd have to pay property taxes on it.
It's best to consult a lawyer/attorney.
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