Real Estate Rehabilitation and Renovation Program

This program grants real estate tax exemptions for eligible and qualified properties under rehabilitation/renovation.  The tax exemption is equal to the difference between the increase in assessed value resulting from the substantial rehabilitation/renovation of a structure and the beginning assessed value as determined by the City Assessor.  This program does not freeze taxes; however, the exemption is subtracted from the fair market value assessment before taxes are calculated.

General Information

  • Applications are available in the City Assessor's office and online, but must be filed in the City Assessor's office prior to starting project/renovation
  • Billings & Collections processes all application fees
  • Improvements must be completed within two years from the date of filing
  • Exemption is effective the following fiscal year and runs with the land
  • All taxes must be paid and remain current
  • Must have a current building permit from Community Development if applicable
  • Must meet all zoning requirements
  • Tax exemption is reduced by 25% each year on July 1 during the last three years of each program, with the final year being 25% of the initial exemption

REHABILITATED/RENOVATED STRUCTURE ELIGIBILITY REQUIREMENTS

RESIDENTIAL MULTIFAMILY
(5 UNITS OR MORE)		 COMMERCIAL OR INDUSTRIAL
$125 non-refundable application fee $250 non-refundable application fee $250 non-refundable application fee
10-year program 8-year program 10-year program
Must be 50 years of age or older Must be 25 years of age or older Must be 25 years of age or older
Must increase the improvement value by 40% or more Must increase the improvement value by 60% or more Must increase the improvement value by 60% or more

Additions to residential, multifamily, commercial or industrial allowed, but only 15% of the original structure
above-grade living area/net leasable area can be added to the exemption.

DAMAGED/DESTROYED STRUCTURE ELIGIBILITY REQUIREMENTS

  • Non-refundable application fee
  • Tax exemption is 50% of the assessed improved value
  • Final improved value must be at least 100% of the assessed fair market value of the structure that was damaged or destroyed
  • Structure cannot be demolished or razed by the new property owner as a result of the property owner's neglect

REVITALIZATION ZONE STRUCTURE ELIGIBILITY REQUIREMENTS

RESIDENTIAL MULTIFAMILY
(5 UNITS OR MORE)		 COMMERCIAL OR INDUSTRIAL
$125 non-refundable application fee $250 non-refundable application fee $250 non-refundable application fee
10-year program 8-year program 10-year program
City Assessor must approve of demolition City Assessor must approve of demolition City Assessor must approve of demolition
Functionally obsolete buildings may be replaced Functionally obsolete buildings may be replaced Functionally obsolete buildings may be replaced


REVITALIZATION ZONE IN GREEN

JANUARY 9, 2018 CITY COUNCIL APPROVED IN-FILL POLICY

New construction on vacant parcels in select inner city areas now qualifies for a partial real estate tax exemption similar to the Damaged/Destroyed Rehabilitation Program.

  • Vacant parcels located in select districts identified on Map of Arts & Cultural, Rehabilitation, Redevelopment and Conservation Districts
  • Select areas of the City can apply for a 50% exemption based on the cost of new construction
  • Exemption periods are as follows:
    • Ten years for residential, commercial and industrial
    • Eight years for multi-family
    • Three year phase-out at 25% per year

JANUARY 9, 2018 CITY COUNCIL APPROVED DERELICT HOUSING POLICY

Buildings that are declared derelict now qualify for a partial real estate tax exemption similar to the original Rehabilitated/Renovated Structure program.

  • The building must be declared as derelict by the office of Community Development prior to application
  • Building must not be a registered Virginia landmark or considered by the Virginia Department of Historic Resources to be significant to the registered historic district
  • Exemption periods are as follows:
    • Ten years
    • Three-year phase-out at 25% per year

Frequently Asked Questions

 

Can I take out more than one exemption on the same piece of property? No. Only one exemption may be active for a property at any given time.
Once I fill out the application, can I just mail it into the City Assessor's Office with payment? No. Application fees are to be paid at Billings & Collections and the application has to be filed in person with the City Assessor's Office.
Can I still apply if I've already started the work? Yes. But it is preferred that our appraisers have the opportunity to visit the property prior to starting any work.
Are extensions granted if I am unable to finish the project within the two years given? No. Extensions are not granted.  You would need to reapply to the program.
Is the tax exemption transferable? Yes.  The exemption stays with the property and automatically transfers with the deed.
Does this program freeze taxes? No.  The exemption amount is subtracted from the assessment before taxes are calculated.  The assessment and/or tax rate can change during reassessments.
Can my contractor fill out the application? Yes.  But the application must be signed by the current owner of the property.
I'm getting ready to build a swimming pool. Does this qualify for the program? No.  Additions such as garages, swimming pools, patios, etc. are not considered living areas.