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. |
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