Residents of the C Street Christian fellowship house will no longer benefit from a loophole that had allowed the house's owners to avoid paying property taxes.
Previously, the house -- despite being home to numerous lawmakers -- had been tax exempt, because it was classified as a church. That arrangement had allowed the building's owner, the secretive international Christian organization The Family, to charge significantly below market rents to its residents. In recent year, Senators John Ensign (R-NV), Tom Coburn (R-OK), Sam Brownback (R-KS) and Jim DeMint (R-SC), and Reps. Zach Wamp (R-TN), Bart Stupak (D-MI) and Mike Doyle (D-PA) have all reportedly called C Street home.
Natalie Wilson, a spokeswoman for the Office of Tax and Revenue for Washington D.C., told TPMmuckraker that her office inspected the house this summer. "It was determined that portions of it were being rented out for private residential purposes," she said. As a result, the tax exempt status was partially revoked. Sixty-six percent of the value of the property is now subject to taxation.
According to online records, the total taxable assessment is $1,834,500. The building's owner last month paid taxes of $1714.70 on the property.
A commenter using the name Vince Treacy, posting on a blog run by George Washington Law professor Jonathan Turley, noted in June that the property enjoyed tax exempt status. In a comment yesterday, he wrote:
Well, at least one complaint just happened to be filed a few months ago, by some anonymous citizen who will remain nameless ""wink, wink," with the taxpayer hotline at the DC tax office.
The C Street house has lately been the subject of unwanted attention thanks to its role in three GOP sex scandals. Ensign, who reportedly recently moved out of the house, was confronted there last year by his fellow C Streeters, including Coburn, about his affair with a top aide's wife. South Carolina governor Mark Sanford revealed this summer that he had received counseling from the house's denizens over his own randy hijinx with his Argentinean mistress. And the wife of former GOP congressman Chip Pickering has alleged in divorce proceedings that the house was the site of "wrongful conduct" between her husband and his girlfriend.
* This post originally reported, based on online records for the city of Washington, D.C., that C Street is owned by Youth With A Mission (YWAM), an international Christian group, and that YWAM is affiliated with The Family. But YWAM official Ron Boehme told TPMmuckraker that the city's records are inaccurate, and that his group sold the house to The Family in 1989. He also said that YWAM is not affiliated with The Family -- though some reports suggest the two groups have close ties.

TPM Stories Now Surging on Digg.com

Obama1st
November 17, 2009 3:00 PM
Don't forget that the dim witted Rep. Heath Shuler NC-11 lives there as well and has voted no on HCR!
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
runfastandwin
November 17, 2009 3:07 PM
Good but I believe the IRS can go back to prior tax years, if it's not ok now I don't see what makes it okay last year and the year before etc. They need to pursue this. Who made the decision to call this a church? What was their IRS approved rationale?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
rgembry
November 17, 2009 9:43 PM in reply to runfastandwin
And isn't below-market rent taxable as income? Even if C Street House is allowed to avoid paying taxes, below market rent should be taxable to the residents.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
dustbunny44
November 18, 2009 12:50 AM in reply to runfastandwin
I suppose it's a church because it's full of people praying they don't get caught.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
lousgirl84
November 18, 2009 9:20 AM in reply to dustbunny44
LOL
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
soupson52
November 19, 2009 11:19 AM in reply to lousgirl84
(giggle) I'll second that LOL.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
slb
November 18, 2009 1:51 AM in reply to runfastandwin
This particular story isn't talking about the IRS; it's the taxing authority in the city of Washington. The tax-exempt status in this case applied to real estate taxes, not income taxes.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Schmed- ley
November 17, 2009 3:18 PM
Good. Now DC can go after the Catholic PAC, I mean Church.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Texar
November 17, 2009 3:31 PM
No longer tax exempt? Then what's the point?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
GTFOOH
November 17, 2009 3:49 PM
If these guys are not there for religious reasons, then why are they there? To get a discount on rent? Or to participate in some right winged secrete government club!
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
commie atheist
November 17, 2009 4:51 PM in reply to GTFOOH
Free nookie.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
kenga
November 17, 2009 9:09 PM in reply to commie atheist
Lotsa dudes with, to put it politely, marital problems.
Me? I'm wondering what the chicken:egg ratio is with them and the Family.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
stefsstuff
November 17, 2009 3:50 PM
It's about time. Now it's time to go after all the others.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
SCG
November 17, 2009 4:01 PM
This post is kind of misleading. I seriously doubt the exemption had anything to do with "below market" rents. Property taxes in DC are high, but they're still only 0.85% of taxable assessment for residents. Even with the increase, the property taxes on the house should only be about $10K/year. Given that a room in a nice house in that neighborhood would go for at least $800/month (as I type, the top 11 craigslist room listings for that neighborhood are between $800 and $1000), there's just no way that taxes will force the Family to rent at market, even assuming the Family has to rent at its actual cost.
Also, DC property taxes only collected semi-annually, meaning the reference to a payment "last month" a little misleading.
I poke 'cause I love. You guys can muck better than this.
Also, to runfastar, DC's determination about a property's use has nothing to do with the Family's tax-exempt status for purposes of federal income taxes.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Andreams
November 17, 2009 4:26 PM in reply to SCG
Thanks for the clarification. This story was a little confusing. From the header, I assumed they meant IRS. After reading I knew it wasn't that but wasn't sure exactly what the impact of property taxes was. Your post was a great help.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
soupson52
November 19, 2009 11:34 AM in reply to Andreams
Really. You did not realize immediately it was about property taxes and therefore, about a local issue? Having owned my own home for years, I immediately understood the implications. Don't own your own home, maybe? Otherwise I don't understand your confusion. And btw, unlike SCG, I think paying $10,000 a year vs $3400 IS a big deal.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Andreams
November 19, 2009 12:05 PM in reply to soupson52
I do own my home but when I saw the headline I thought it was about the IRS tax exempt status for the "church". Apparently, they still have that status but I don't understand how. Hopefully, that will soon end.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
mcc
November 17, 2009 4:47 PM in reply to SCG
If the taxes weren't the source of the below-market rents, this raises a question. If you are offering below-market rent to a congressperson, does this count as something like an in-kind contribution? Aren't there all sorts of laws you have to follow if you're doing that?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
sandi
November 17, 2009 5:41 PM in reply to mcc
I keep hoping there will be some ethics charges in that regard. It certainly appears shady!
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
SCG
November 17, 2009 6:37 PM in reply to mcc
mcc, that is indeed the question. My guess is that the Family must, at a minimum, charge its actual costs. If that's right, then increases in taxes should, as Zach implied, flow through to the Congress-criters living there. My point is just that DC property taxes won't amount to a game changer in terms of market.
Jeff, I'm no expert and not a tax lawyer. My only claim to expertise is parochial--I'm a DC resident/homeowner and have gone rounds with the tax authority over my own property taxes.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Jeff Sharlet
November 17, 2009 4:57 PM in reply to SCG
SCG -- I'm the author of a book about the organization behind C Street, "The Family" and a contrib ed for Harper's and Rolling Stone. You sound like you know a thing or two about how taxes work in a situation like this. Do you have a minute? I'm at jeff.sharlet@gmail.com. Thanks.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
GTFOOH
November 17, 2009 5:21 PM in reply to Jeff Sharlet
Loved your book Jeff!
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Xantar
November 17, 2009 5:50 PM in reply to Jeff Sharlet
If that's really you, Jeff (sorry, but this is the internet), then I second GTFOOH. Your book was a great service to the country and a fine work of true journalism of the sort you don't see practiced enough thees days. And I always perk up a little bit when I hear you're going to appear on Rachel Maddow's show.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Obama1st
November 17, 2009 6:43 PM in reply to Jeff Sharlet
jeff...what you do know of Rep. Heath Shuler living there? He deines that he lives
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
JNagarya
November 17, 2009 7:57 PM in reply to Jeff Sharlet
I believe this:
"YWAM official Ron Boehme told TPMmuckraker that the city's records are inaccurate, and that his group sold the house to The Family in 1989. He also said that YWAM is not affiliated with The Family."
Don't you?
We all know that Christians don't lie.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
JohnW1141
November 17, 2009 9:10 PM in reply to Jeff Sharlet
Jeff,
I'm watching you on the Rachel Maddow show right now. (Tuesday night)
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Jeff Sharlet
November 17, 2009 6:08 PM in reply to SCG
It's me. I'm slated to discuss this on Maddow tonight -- there's even more to it, in fact, but Zach has done a great job as always. These have really been invaluable reports.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
soupson52
November 19, 2009 11:28 AM in reply to SCG
You truly believe a property listed as a church used as a room rental has no IRS conflict? Sorry. I don't believe you. If my local church divided up rooms and rented them out to anyone other than catholic priests or ministers, there would be tax significance. In addition to property tax there is an income tax implication on rent collected.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
The Old Grouch
November 17, 2009 4:17 PM
To quote the late Frank Zappa: "Tax the churches. Tax the businesses owned by the churches."
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
synchronicity
November 17, 2009 4:28 PM
Well... they can always just buy another house...
The practices of 'The Family' seem to support promiscuity and other casual treatment of law and values because their members are all considered 'chosen ones' that know better than we do and deserve more because 'they know what to do with it'. It a sick story being kept as secret as possible. Seems that the promiscuity has put them a little more out in the open.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Chabuka
November 17, 2009 4:30 PM
There are a few Democratic Congress members living and working out of "C" Street, also...
Rep. Bart Stupak D-MI
Rep. Joe Pitts R-PA
Rep. Ike Skelton D-MO
Rep. Mike McIntyre D-NC
Rep. John Tanner D-TN
Rep. Lincoln Davis D-TN
Rep. Dan Boren D-OK
Rep. Heath Shuler D-NC
The anti-woman group..."keeping women in their place" pregnant, at home and stupid........
Got to pay more attention to who we vote for..more research into their backgrounds and alliences..to hell with debates, TV campaign commercial, even what the candidates are saying..(they lie..they will do, say anything to get elected, so they can collect those really big BUCKS!!)
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
rynato
November 17, 2009 4:36 PM in reply to Chabuka
look where they are all from, too. The only ones from north of the Mason-Dixon line are the odious Stupak and Joe Pitts, who must represent a district in the "Alabama" part of PA that's between Philly and Pittsburgh.
just because they are a Democrat, doesn't mean they are always on our side.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
JohnW1141
November 17, 2009 5:48 PM in reply to Chabuka
Chabuka,
Just how big is this frikkin house?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Jack
November 18, 2009 8:54 AM in reply to Chabuka
Chabuka,
I would recommend you getting your facts straight before sending out a list of members you think visited C Street. I know you're wrong about at least one, John Tanner, and possibly more. I would recommend checking your sources before posting...
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
theWalrus
November 17, 2009 4:39 PM
Good move. How about Scientology next?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
jeffgee
November 17, 2009 5:23 PM in reply to theWalrus
They have better lawyers
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
traitorjoe
November 17, 2009 4:45 PM
I'm trying to fall back in love with Sanford, Ensign and the "C Street" gang but you guys are making it tough.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
DownriverDem
November 17, 2009 4:58 PM
Now start with all the Repub Christian Churches that put out political voting guides and preach GOP hate from the altar. The Catholic Church should also be examined because of what they did to the health care reform bill.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
714Day
November 17, 2009 5:56 PM in reply to DownriverDem
It makes me gag that this house of horse manure and dog and pony shows could ever have "qualified" for an exemption in the first place. An Episcopalian church in Pasadena nearly had it's status revoked because the pastor did a sermon comparing Kerry and Shrub with regard to the teachings of Jesus. They had to pay a fortune for a legal defense.
Ridiculous.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
714Day
November 17, 2009 5:59 PM in reply to DownriverDem
Sorry for that, DRDem - clearly that wasn't a reply to you - duped my text fr downthread.
However, you forgot the Mormon PAC in your cogent comment. Let's give them credit where credit is due. They nearly singlehandedly can take the credit for dooming CA prop 8.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Impishparrot
November 17, 2009 5:09 PM
The GOP 'church' had to face the IRS before they faced God? Oooops! On another note...it only took one complaint with the taxpayer hotline at the DC tax office to put the wheels in motion. Time to investigate all those religious 503 organizations on a local level especially the ones that are deeply involved in politics, and whistleblow on the organizations that are in violation.
For Georgia residents:
Georgia Department of Revenue Fraud Hot Line – (404) 417-4266
A new fraud hot line has been established for practitioners and taxpayers to report tax related activities that they believe are illegal or incorrect. The hot line can be used to report suspected illegal activity for all tax types: income, withholding, corporate, sales tax, stolen refunds, etc. Persons submitting reports can either provide their name or remain anonymous.
Those of you who do not reside in Georgia are encouraged obtain the hotline number in your state and circulate it among your activist friends.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Impishparrot
November 17, 2009 5:19 PM
Correction... The fundamentalist 'church'...
My apology.
Occupants of the C Street 'Church' belong to both parties. Their loyalties are to The Family - a fundamentalist 'Christian' sect.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
jeffgee
November 17, 2009 5:20 PM
Next up for Fox News: find a way to say Obama's persecuting Christian men just cuz they're Republicans. Or republican men just cuz they're Christians.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
a SC mom
November 17, 2009 5:31 PM
good news -- now i wish TPM would hound DeMint on how he feels.
DeMint is taking credit for Honduras and the Nov 29 election
http://demint.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=c6542515-c3af-d65a-085d-537015ff8a97
but, being a "good Christian," how does he feel about the human rights abuses there?
http://www.reuters.com/article/latestCrisis/idUSN12151282
go after him...he's up for re-election in 2010
and there is a decent candidate running against him, Chad McGowan
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
fitley
November 17, 2009 5:42 PM
Church of the Hole-ey Mistress.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
714Day
November 17, 2009 5:51 PM
It makes me gag that this house of horse manure and dog and pony shows could ever have "qualified" for an exemption in the first place. An Episcopalian church in Pasadena nearly had it's status revoked because the pastor did a sermon comparing Kerry and Shrub with regard to the teachings of Jesus. They had to pay a fortune for a legal defense.
Ridiculous.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Impishparrot
November 17, 2009 6:01 PM
Oh... what about all those back taxes? The C Street 'Fellowship' purchased the property in 1981. It seems that this re-classification is only for DC taxes. What about federal income taxes? Surely, it's sponsorship of the National Prayer Breakfast should fall under scrutiny also?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
verite
November 17, 2009 6:11 PM
$1,714.70 for a half year of property tax on a property valued over $1.8 mill seems awfully low. Is it because of it's tax exempt status? Also, if the owner information is incorrect, shouldn't the city have been informed?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
SCG
November 17, 2009 6:55 PM in reply to verite
DC's online land records are notorious junk.
Also, the $1714 in October would have been in response to the September bill, which is for the second half of 2009 taxes, which were assessed back in March (I think). That means it would represent taxes due BEFORE this change. If we assume the 1.8mm figure from today was in place in March, we can speculate that they were paying taxes on about 22% of assessed value.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Impishparrot
November 17, 2009 7:07 PM
Is the information correct that the Fellowship's 501 status has been reassessed?
If so, it would seem that the organization's tax bill will significantly increase. Does the 501 revision apply to its federal taxes?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
slb
November 18, 2009 2:01 AM in reply to Impishparrot
The city of Washington would have no power to revoke a 501 status. The revocation was of the exemption from real estate taxes, that's all. Nothing to do with the IRS.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Rosenlundkv
November 17, 2009 9:38 PM
But have they not been sticking it to us religiously? It is about time, If all of the Representatives Cong/Reps oufices were audited there is more than likely more sinners.
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
inokeah
November 17, 2009 9:52 PM
Lets start useing the new Obama Lexicon:
Yo YO YO, Let me give a SHOUT OUT to my favorite Home girl
Rachel "the profile" Maddow.
I loves dat bitch, she has got my back alongs wit other pengulas oragans.
--- sorry I have to go john and hurll
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Senorita Bonita
November 17, 2009 11:15 PM
These are the email addresses that turned up:
Shuler@mail.house.gov,Senator_ensign@ensign.senate.gov,Senator_coburn@coburn.senate.gov,Senator_brownback@brownback.senate.gov,Senator_demint@demint.senate.gov,Wamp@mail.house.gov,stupak@mail.house.gov,doyle@mail.house.gov
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Auduboner
November 18, 2009 1:43 AM
So spend the $200 and do a title search!
Joe Pitts is the Farthest-right Rep rep from PA, representing the Skinhead/KKK section of Lancaster County. Bible? He never heard of it...
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Auduboner
November 18, 2009 1:45 AM
Some of you have got this wrong - the IRS has NOT revoked any tax-exempt status. But they should!
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
Citoyen92
November 18, 2009 8:11 AM
Did the below-market rent residents of "C Street" deduct their lodging expenses from their taxes?
After all, "C Street" was a nonprofit.
I bet each Congressman/Senator deducted the rent from their annual tax returns and called it "charitable contributions." That would surely be a nice writeoff!
Someone care to ask?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?
brich
November 18, 2009 3:23 PM
As I commented on Wash Post's story in June: This deserves to be unraveled . . . Seems like many use the 133 C Street address; there are a whole string of aka's -- the Fellowship Foundation, International Foundation, C Street Center, and "the Family." Can't find IRS Form 990s in some cases. Strange that right next door at 139 and 137 C SE (all houses in a row) is Rev. Lou Sheldon's Traditional Values Coalition and Christian Seniors Association. . . they are lobbying operations that have had a few problems -- like ties to Abramoff mess(TVA) and questionable fund-raising practices (CSA). TVA's Exec Director is Andrea Sheldon Lafferty, dau. of the Rev and wife of James Lafferty, former press aide to Tom DeLay and head of Christian Seniors. Apparently these groups pay DC property tax, but they do beaucoup fundraising and enjoy a federal tax exemption under IRS 501(c)4. Why is it so hard to follow the paper trail and money?
Reply | Flag Abuse
Are you sure this comment violates TPM's Terms of Service?