A Win for Those in Need
Timothy S. Hollister represented Rainbow Housing Corporation and its affiliate Gilead Community Services, subsidiaries of mental health services providers Connecticut Institute for the Blind and Oak Hill, in a tax exemption case in the Connecticut Superior Court, and then as co-counsel with Attorney Pat Naples of Shipman & Goodwin, in the Supreme Court.
In Rainbow Housing Corp. v Town of Cromwell, the Town claimed that the Rainbow/Gilead mental health facility did not qualify as tax exempt “temporary housing” because the facility did not have a defined maximum length of stay for individuals receiving mental health services.
The Supreme Court ruled in favor of Rainbow, stating that as long as the housing is part of a mental health treatment program, and the housing is not permanent in the sense of being a person’s “domicile”, and the length of stay is based on the treatment program, then the property and the facility are tax exempt.
Hinckley Allen congratulates Tim, Rainbow and Gilead on this multi-disciplinary win, as this case has a history dating back to 2015. At that time, Gilead tried to establish, in a residential neighborhood, a group home for men recovering from drug and alcohol addiction. In the aftermath of Gilead’s abandonment of that facility, the town revoked the previously-recognized tax exemption of another group home owned by Rainbow and operated by Gilead, which had been in existence for more than a decade. The revocation resulted in the tax exemption case. Whether the revocation was part of retribution against Gilead is part of a federal civil rights case going to trial in federal District Court in October 2021.
Hinckley Allen works hard to support our nonprofit clients to ensure they can continue providing their important services to our communities.