Permitted Usage on Nonprofit Property initially zoned for a school

[Gonzinator]

Our nonprofit owns and is located on property that was formerly charter school property. Initially, the land was zoned with a special use permit for education. We would like to rent out spaces in our buildings on our property. However, we are unsure if, being zoned as we are, if the person renting could run a commercial business there. Can anyone help me understand what is/isn't allowed under a special use permit for education?
Thanks very much.

 

[Just Blue]

Our nonprofit owns and is located on property that was formerly charter school property. Initially, the land was zoned with a special use permit for education. We would like to rent out spaces in our buildings on our property. However, we are unsure if, being zoned as we are, if the person renting could run a commercial business there. Can anyone help me understand what is/isn't allowed under a special use permit for education?
Thanks very much.

What state?

 

[Gonzinator]

NM

 

[PayrollHRGuy]

Zoning laws are local. You need to see what is allowed by your locality for your specific zone type.

What is the surrounding area zoned as?

 

[Zigner]

What did your city's zoning department say when you asked?

 

[adjusterjack]

Can anyone help me understand what is/isn't allowed under a special use permit for education?

A visit to your zoning department will get you all the answers you need. Go ye there.

 

[Gonzinator]

Thank you all for your quick input. I appreciate your time.

The surrounding area is zoned residential.

Maybe this sounds foolish to you all but we have not yet approached the zoning department. Among the organization, there is some hesitance to reach out directly to the zoning dept. to define what 'educational purposes' exactly is. There is some concern that this would put the property on their radar and cause our activities to be scrutinized by them. As for myself, I feel that going directly would be the best way to attain our answer. We don't have anything to hide and we need to follow local zoning regulations, just like everybody else. I'd rather be legitimate than be found out of compliance. The reason I am asking on a forum is because I am trying to exhaust any other ways I can think of getting an answer, which I will report back to the organization and then I will make my case for speaking directly to the zoning.

 

[Taxing Matters]

Thank you all for your quick input. I appreciate your time.

The surrounding area is zoned residential.

Maybe this sounds foolish to you all but we have not yet approached the zoning department. Among the organization, there is some hesitance to reach out directly to the zoning dept. to define what 'educational purposes' exactly is. There is some concern that this would put the property on their radar and cause our activities to be scrutinized by them. As for myself, I feel that going directly would be the best way to attain our answer. We don't have anything to hide and we need to follow local zoning regulations, just like everybody else. I'd rather be legitimate than be found out of compliance. The reason I am asking on a forum is because I am trying to exhaust any other ways I can think of getting an answer, which I will report back to the organization and then I will make my case for speaking directly to the zoning.

It's better to find out the zoning office's stand on it before you do it than it is to get zapped by the zoning office for violating the zoning rules later if the zoning office believes the use is not permitted. The idea that the use won't somehow come to the attention of the zoning office if you don't ask is a risky one given that the use will be pretty apparent if the zoning office bothers to look at it at all.

 

[adjusterjack]

Maybe this sounds foolish to you all but we have not yet approached the zoning department. Among the organization, there is some hesitance to reach out directly to the zoning dept. to define what 'educational purposes' exactly is.

Yes, that is foolish. I'll take a wild guess here that "educational purposes" does NOT include renting out space to businesses.

The reason I am asking on a forum is because I am trying to exhaust any other ways I can think of getting an answer, which I will report back to the organization and then I will make my case for speaking directly to the zoning.

You could say that no amount of speculation by strangers on the internet is going to properly answer any zoning questions.

 

[bcr229]

Many counties have their zoning ordinances available online. Have you tried searching for the documentation on your county's web site to see if the definition is in there?

 

[Gonzinator]

To bcr229:
Thank you for the suggestion. I was finally able to find a document online from the county zoning but, unfortunately, definitions and ordinances are vague and don't give me any clear answer on this specific question. However, I definitely am now more aware of the consequences of non permitted use and procedures relating to termination of the permit!

To all:
It is apparent that the need to speak directly with the zoning dept. is required, which is what I shall do. I thought some internet sleuthing, of which inquiring on this forum was a part of, would lead me to a more definitive answer. I guess there really are still some things in life that you just can't Google the answer to!

What I do know is that 501(c)3 orgs can generate it's income via rental property and that, in brief, the income is not taxable for activities that are directly related to the purpose of the org's exemption and their mission and that these activities cannot be running regularly. They can run on a short term basis only. So, I know that we obviously can't rent out to like a 31 Flavors or pizza place. The question that remains is what would we need to do in order to be in compliance with zoning for renting out our space. Perhaps we will have to upgrade the buildings to be coded for commercial usage. I'm not sure about that. But I am confident we can get questions answered from the Planning dept.

Thanks, everyone, for the input that was helpful.

 

[PayrollHRGuy]

What I do know is that 501(c)3 orgs can generate it's income via rental property and that

While a 501(c)3 can under the tax code do that the tax code has absolutely zero effect on local zoning laws.

And if others in your organization are concerned with butting your use of the property on the radar I wonder why those same people aren't worried that your renting of the property won't do the same.

What will surely put it on the radar is your residential neighbors complaining and renting to a business in the middle of a residential area has close to a 100% chance of getting someone to bitch.

 

[Taxing Matters]

While a 501(c)3

I'll go ahead and pick this nit: it is a section 501(c)(3) organization, not 501c3, 501C3, 501-c3, 501(c)3, or any of the other ways I've seen it written on the internet. Yes, I know everyone could tell what is meant, but I still think it's worth pointing out so that in the future you get it right. Knowledge is power.

 

[PayrollHRGuy]

At least I didn't type 501see three.