A non-profit religious organization owned real estate and operated it as income-producing property by renting it out to tenants. The organization applied for a demolition permit to remove the improvements from the property, which triggered an assessment by the local agency of the property’s potential status as a historic landmark. Following a hearing, the agency designated the property as a historic landmark and denied the organization a demolition permit. The organization claimed it was entitled to a demolition permit since property owned and operated by a religious organization for religious purposes was exempt from historic landmark status. The agency claimed the property did not qualify for an exemption from historic landmark status since the organization operated the property as income-producing rental property. A California appeals court held property owned and operated as an income-producing rental property by a non-profit religious organization is not exempt from being designated a historic landmark since property must be used for purposes related to an organization’s religious mission to qualify for the exemption, and the organization’s use of the property merely as an income-producing property was not sufficiently related to its religious mission. [Or Khaim Hashalom v. City of Santa Monica (2010) 190 CA4th 375]
