What This Statute Says
A.R.S. § 42-11106 exempts qualifying apartment properties operated for the housing of older adults and residents with disabilities. The exemption requires nonprofit ownership and dedicated use of the property for the qualifying population.
Property that is used to operate a nonprofit residential apartment housing facility that is structured for persons with disabilities or persons who are sixty-two years of age or older is exempt from taxation if either of the following circumstances applies:
A.R.S. § 42-11106This statute supports specialized affordable housing. A nonprofit that builds an apartment complex specifically for older adults or people with disabilities can hold the property exempt from property tax for as long as it serves that population.
For estate planning families considering charitable gifts to nonprofit senior housing or disability housing organizations, the exemption is one reason the donee can use 100% of the rent revenue for services rather than for taxes. The statute itself, written decades ago, uses an older statutory phrase referring to senior residents; in plain English we describe the population served as older adults.
When This Statute Comes Into Play
This statute typically becomes relevant in three situations. A property owner is reviewing an annual tax bill. An estate is being administered and the personal representative has to address ongoing property tax obligations. Or a charitable or nonprofit organization is claiming or maintaining an exemption. The statute is part of a larger framework in chapter 11 of title 42 and operates alongside the related sections cross-linked below.
What This Means for Arizona Families
Most families never think about Arizona property tax statutes until they are sitting at a closing table on an inherited home, reviewing an unexpected tax bill, or trying to claim an exemption for a surviving spouse. When that moment arrives, the rules in chapter 11 of title 42 are the framework you are working inside.
If you are holding real property in a revocable living trust, the trust structure does not by itself remove the property from the tax rolls. The exemption has to come from a specific statute. Our FAQ on what to do with property you inherit in Arizona covers the immediate practical questions, and our FAQ on probate timelines covers how a contested or stalled administration can affect tax filings and exemptions.
If you are administering an estate, the personal representative has a duty to keep property taxes current, to claim available exemptions where appropriate, and to maintain documentation in case the assessor reviews a claim later. Calendar the February exemption filing window each year for any property where a widow, widower, or disability exemption applies. Once the deadline passes, the saving for that year is usually lost.