Single Family Residential (1-4 units)
- The property shall be no less than 20 years old.
- Rehabilitation must increase the initial value of the structure by a minimum of 20%.
- Appropriate permits must have been acquired from the Department of Planning and Development Review, Room 110, at the time of application.
- Rehabilitated or replaced structure must meet zoning requirements.
Multi-Family Residential (five units or more)
- The property shall be no less than 20 years old.
- Rehabilitation must increase the initial value of the structure by a minimum of 40%.
- Appropriate permits must have been acquired from the Department of Planning and Development Review, Room 110, at the time of application.
- The replacing structure cannot exceed the square footage by more than 30%.
- Rehabilitated or replaced structure must meet zoning requirements.
Commercial of Industrial (outside of the Enterprise Zone)
- The property shall be no less than 20 years old.
- Rehabilitation must increase the initial value of the structure by a minimum of 40%.
- Appropriate permits must have been acquired from the Department of Planning and Development Review, Room 110, at the time of application.
- The replacing structure cannot exceed the square footage of the replaced structure by more than 110%.
Commercial of Industrial (in the Enterprise Zone)
- The property shall be no less than 20 years old.
- Rehabilitation must increase the initial value of the structure by a minimum of 40%.
-
Appropriate permits must have been acquired from the Department of Planning and Development Review, Room 110, at the time of application for
Tax Rehabilitation.
- Rehabilitated or replaced structure must meet zoning requirements.
- The replacing structure cannot exceed the square footage of the replaced structure by more than 110%.
Procedures
Upon receipt of the application, the Assessor's Office will inspect the property to determine the base (initial) value.
Applications expire the second year after which they are filed.
Example: Filed 7/1/2006; expire 7/31/2008), with the exception of Commercial/Industrial properties in the Enterprise Zone.
Applications in the Enterprise Zone expire December 31st of the second year.
The property must meet the requirements for the abatement by application expiration date. If it does not, the application will be denied and a new application must be filed in order for a new base value to be established.
An interior or exterior inspection must be conducted in order for the application to be valid.
At the end of each calendar year of the application period, the Assessor's Office is required to place a partial value on rehabilitation work as per state law. Credit is not applied to the tax bill until all work is completed and the requirements have been met.
It is the responsibility of the property owner to inform the Office of the Assessor of Real Estate, in writing, when the work is complete. The request for final value determination must be made prior to the expiration of application of the current year to ensure a proper credit. If the property qualifies, the credit for rehab will be granted on the year following request.
For residential, multi-family and commercial (inside of the Enterprise Zone), the initial increase, caused by rehabilitation will be abated 100% for seven years followed by a 3 year phase out (25%, 50%, & 75%) in years 8-10.
For commercial and industrial (outside the Enterprise Zone), the increase caused by rehabilitation will be abated 100% for five years followed by a two-year phase-out (33% & 66% ) in years 6-7.
The Assessor's Office will continue to conduct annual reassessments. Any increase due to reassessment is not included in the tax rehabilitation program and is the responsibility of the taxpayer. (The tax abatement automatically transfers to new owners should the property sell.)
After the property qualifies, the tax credit begins January 1 of the year following the final inspection. The owner shall receive, during the years of partial tax exemption, a credit posted to the annual tax bill for such exemption from the Department of Finance. The partial exemption for each tax year shall be continued upon payment of the non-exempt amount of real estate taxes on said property on or before June 15 of each tax year.
Failure to pay real estate on or before June 15 will result in forfeit of the partial exemption for that year and cancellation of the rehab credit issued for that year.
The final value is determined using the original date of the application. Value appreciation due to inflation or changing market conditions is excluded from the final value estimate.
Application for the Tax Rehabilitation Program must be made by June 30, 2010.
If a property has been disqualified for any reason, value improvement to the property will be fully assessed.
If a property is not been completed within the two year limit, the final value will be based on the existing condition as of the final inspection.
As of July 1, 2006 per
City Code Sec. 98-132,
only one application may be taken out per parcel. If you have an active rehab, no applications can be submitted for additional rehabs
unless the active rehab will be canceled. The only exception would be for parcels that are being subdivided, or condo conversions.
Demolition and replacement of any registered Virginia Landmark Property or any structure deemed significant by the Virginia Department of Historic Resources, or to a registered "historic district", shall make that property ineligible for the Rehabilitation Abatement Program.
Extensions to the Rehab Program are not granted.
For additional information, please visit room 802, City Hall or our website.
