PARTIAL EXEMPTION OF CERTAIN REHABILITATED STRUCTURES FROM REAL ESTATE TAXATION

Richmond, Va., City Code ch. 26, art. V, div. 3

in effect

Richmond, Va., City Code § 26-389 Purpose.

Sec. 26-389. - Purpose. The purpose of this division is to reduce or eliminate concentrations of blight, stimulate investment and encourage the improvement of real property within the City of Richmond. (Code 2015, § 26-408.1; Code 2020, § 26-409; Ord. No. 2019-338, § 2(26-408.1), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-390 Definitions.

Sec. 26-390. - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Addition means an increase in the square footage of a qualified structure that expands the utility of such structure. Base value means the assessed value of real estate for which an application has been filed in accordance with this division, as set forth in the land book on January 1 of the tax year in which such application is filed. Linear feet means the shortest distance from one point to another, measured horizontally in feet, where one foot is equal to 12 inches. Multifamily dwelling means land containing a structure or other improvement of five or more units constructed or used for residential purposes in accordance with this Code and other applicable law. Qualified structure means a structure or other improvement no less than 20 years of age that has qualified for rehabilitation, renovation or replacement in accordance with this division. Rehabilitation means the process of restoring a qualified structure through: (1) Renovation; (2) Replacement; or (3) Renovation and the construction of an addition. Renovation means the process of updating the utility of a qualified structure, in whole or in part, including, but not limited to, the partial destruction and rebuilding of such structure. Replacement means the process of demolishing a qualified structure for which an application has been filed in accordance with this division and subsequently replacing such structure by constructing a new structure on the same real estate upon which the qualified structure was situated. Single-family dwelling means land containing a structure or other improvement of one to four units constructed or used for residential purposes in accordance with this Code and other applicable law. Square footage means the area of a structure or other improvement measured in square feet. Substantially rehabilitated means rehabilitation of a qualified structure so as to increase the assessed value over the base value of the qualified structure by no less than 40 percent of the base value for multifamily dwellings and by no less than 20 percent of the base value for single-family dwellings. (Code 2015, § 26-408.2; Code 2020, § 26-410; Ord. No. 2019-338, § 2(26-408.2), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-391 City Assessor and Director of Housing and Community Development duties; evaluation of exemption program.

Sec. 26-391. - City Assessor and Director of Housing and Community Development duties; evaluation of exemption program. (a) The City Assessor shall, upon application made to the City Assessor and to the Director of Housing and Community Development in accordance with Section 26-394, conduct such inspections of the real property for which an application has been filed in accordance with this division, determine the base value of the such property and, upon completion of the rehabilitation, renovation or replacement of a qualified structure, determine the amount of the increase in assessed value of the subject property resulting from the rehabilitation, renovation or replacement of such qualified structure. Upon confirmation from the Director of Housing and Community Development that all of the applicable requirements of this division have been met, the City Assessor shall issue the partial exemption from real property tax of real property that has undergone substantial rehabilitation, renovation or replacement for multifamily dwelling or single-family dwelling use in accordance with this division. (b) The Director of Housing and Community Development shall, upon application made to the City Assessor and to the Director of Housing and Community Development in accordance with Section 26-394, review such application, conduct such inspections, and gather such information, to the extent permitted by law, as the Director of Housing and Community Development deems necessary to evaluate each applicant's compliance with the requirements of this division. The Director of Housing and Community Development shall notify the City Assessor on or before the deadline established by the rules and regulations issued in accordance with Section 26-392 concerning which applications have met the requirements of this division and are therefore eligible for the partial exemption for which this division provides. (c) Beginning with the fifth year after the ordinance providing for this division becomes effective, the Chief Administrative Officer shall evaluate the partial tax exemption program herein created by no later than June 30 every five years that the program established by this division is in effect and shall make a recommendation and present the program evaluation results to the City Council as to whether or not the partial tax exemption program established by this division should continue in effect. (d) The evaluation criteria shall include, but not necessarily be limited to: (1) The number of applications submitted; (2) The number of applications approved for consideration by the City Assessor; (3) The number, type and description of properties qualifying for partial tax exemption under this division; (4) The total dollar amount of the resulting assessment credit ordered; (5) The revenue impact on the City both with and without the existence of the program; and (6) Any other quantifiable data that can be used to measure the overall effect of the program. (Code 2015, § 26-408.3; Code 2020, § 26-411; Ord. No. 2019-338, § 2(26-408.3), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-392 Rules and regulations for administration of division.

Sec. 26-392. - Rules and regulations for administration of division. The Director of Housing and Community Development, with the advice and comment of the City Assessor, shall develop and implement such rules and regulations not inconsistent with the provisions of this division as the Director of Housing and Community Development deems necessary for the effective administration of this division. Such rules and regulations shall include, at a minimum, guidelines regarding eligibility requirements, application requirements, and set forth the responsibilities of the City Assessor and the Director of Housing and Community Development for purposes of implementing the program for which this division provides. (Code 2015, § 26-408.4; Code 2020, § 26-412; Ord. No. 2019-338, § 2(26-408.4), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-393 Eligibility of residential real property; annual renewal application.

Sec. 26-393. - Eligibility of residential real property; annual renewal application. (a) In order to qualify for the partial exemption from real property taxation for real property rehabilitated, renovated or replaced for multifamily dwelling or single-family dwelling use, throughout the exemption period established by Section 26-395(a), the rehabilitated, renovated or replacement structure for multifamily dwelling use must be a multifamily dwelling, a minimum of 30 percent of which provides housing restricted to individuals or families making up to 80 percent of the area median income for the Richmond-Petersburg Metropolitan Statistical Area with a maximum rent, calculated annually, no greater than 30 percent of the income of any such individual or family and for single-family dwellings, the rehabilitated, renovated or replacement structure for single-family dwelling use must be a single-family dwelling, a minimum of 30 percent which provides housing restricted to individuals or families making up to 80 percent of the area median income for the Richmond-Petersburg Metropolitan Statistical Area. In addition, the qualified structure must have been situated at its existing location for no less than 20 years and has exterior walls, the total linear feet of which exterior walls is at least 80 percent of the total linear feet of the exterior walls of the structure or other improvement as such structure or other improvement existed 20 years before the date of application. For purposes of determining the age of a structure or other improvement for which an application for partial tax exemption has been filed in accordance with this division, the earliest assessment date of the structure or other improvement in the records of the City Assessor shall be used to calculate the age of such structure or other improvement. For purposes of determining the total linear feet of the exterior walls of a structure or other improvement as such structure or other improvement existed 20 years before the date that an application for partial tax exemption has been filed in accordance with this division, the total linear feet of the exterior walls of the structure or other improvement as such structure or other improvement existed 20 years before the date of application as reflected in the records of the City Assessor shall be used. In determining the total linear feet of the exterior walls of the structure or other improvement for purposes of this division, the City Assessor shall employ usual and customary methods of determining the linear feet of exterior walls of structures or other improvements. Any portion of a multifamily dwelling or single-family dwelling that is commercial space shall not be eligible for the exemption for which this division provides. Any multifamily dwelling or single-family dwelling that does not meet the applicable minimum percentage for housing restricted to individuals or families making up to 80 percent of the area median income for the Richmond-Petersburg Metropolitan Statistical Area set forth in this section, that exceeds the maximum rent set forth in this section, or that does not have the dwelling units in such multifamily dwelling interspersed among dwelling units offered for rent to individuals or families making more than 80 percent of the area median income for the Richmond-Petersburg Metropolitan Statistical Area shall not be eligible for the exemption for which this division provides. (b) In order to qualify for the partial exemption from real property taxation for real property rehabilitated, renovated or replaced for multifamily dwelling or single-family dwelling use, the qualified structure must be substantially rehabilitated after the date on which an application is filed in accordance with this division, but prior to the applicable deadline set forth in Subsection (d) of this section. For qualified structures substantially rehabilitated by replacement or by renovation and the construction of an addition for multifamily dwelling or single-family dwelling use, the total square footage of any such replacement structure or addition shall not exceed the total square footage of the qualified structure or other improvement by more than 100 percent. If the total square footage of the qualified replacement structure or addition exceeds the total square footage of the qualified structure by more than 100 percent, the rehabilitated, renovated or replaced qualified structure shall not be eligible for a partial exemption pursuant to this division. (c) In order for the partial exemption for a property to continue in effect, such property shall be maintained in compliance with the provisions of the Virginia Uniform Statewide Building Code. If, after receiving notice of a violation of this section, the owner of the property fails or refuses to complete the necessary corrections within the time required for such action, or refuses City inspectors, City appraisers, or other City employees performing duties in accordance with this division or applicable provisions of this Code access to all or any portion of the subject property for the purpose of determining continued eligibility under this section, then such eligibility shall terminate. (d) The rehabilitation, renovation or replacement, as applicable, must be completed within two years after the date the building permit applied for in accordance with this division has been issued or, if no building permit is required in accordance with applicable laws and regulations, within two years after the date of the application filed in accordance with this division. (e) The rehabilitation, renovation or replacement, if any, must be in conformity with the general character and quality of the existing structures in the surrounding community, as determined by the Director of Housing and Community Development. (f) In order to retain the partial exemption for which this division provides, each owner of real property that has qualified for partial exemption of real estate taxes under this division shall annually file a renewal application with the Director of Housing and Community Development on forms to be prescribed by the Director of Housing and Community Development, and any other documentation as may be required by the Director of Housing and Community Development, on or before the deadline established by the rules and regulations issued in accordance with Section 26-392 until such partial exemption expires or is otherwise terminated for failure to comply with the requirements of this division or other applicable law. The partial exemption for which this division provides shall terminate if any owner of real property fails to comply with the requirements of this subsection. In the case of any such termination of the partial exemption for which this division provides, the partial exemption for the tax year in which the date upon which the renewal application is due falls and for all subsequent tax years remaining in the exemption period for such real property shall be forfeited and the credit for the tax year in which the date upon which the renewal application is due falls and for all subsequent tax years remaining in the exemption period shall be canceled and shall be of no effect. (Code 2015, § 26-408.5; Code 2020, § 26-413; Ord. No. 2019-338, § 2(26-408.5), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-394 Application.

Sec. 26-394. - Application. (a) No partial exemption from real property tax under this division shall be issued for real property: (1) Whose owner or such owner's agent has not submitted an application to the City Assessor and to the Director of Housing and Community Development for partial tax exemption in accordance with this division prior to construction; (2) Whose owner has failed to pay any amount of nonexempt real estate taxes; (3) Whose owner has failed to submit design plans to the City Assessor and the Director of Housing and Community Development; or (4) That is receiving any other real estate tax exemption authorized by this Code. (b) As a prerequisite for initially qualifying for partial tax exemption under this division, the owner or agent of the owner of real property shall, on or before the application deadline established by the rules and regulations issued in accordance with Section 26-392, file simultaneously and prior to any work being started on the subject property: (1) An application for partial exemption of real property from taxation with the City Assessor; (2) A copy of the application filed with the City Assessor in Subsection (b)(1) of this section with the Director of Housing and Community Development, and, to the extent required by applicable laws and regulations; (3) An application for a building permit. For single-family dwellings and multifamily dwellings containing no more than five units, each application for such exemption filed with the City Assessor shall be accompanied by a processing fee in the amount of $125.00. For multifamily dwellings offered or to be offered for rent, excluding condominiums, containing six more units, each application for such exemption filed with the City Assessor shall be accompanied by a processing fee in the amount of $250.00. No property shall be eligible for such exemption unless all appropriate building permits have been acquired and the Director of Housing and Community Development has verified that the rehabilitation, renovation or replacement indicated on the application has been completed and a certificate of occupancy has been issued. Furthermore, no property shall be eligible for such exemption if any City inspector, City appraiser, or other City employee performing duties in accordance with this division or applicable provisions of this Code have been denied access to all or any portion of the subject property before, during or after the work for which a partial exemption has been applied, for purposes of determining whether the rehabilitation, renovation or replacement has been completed and for appraising the property. (c) Upon receipt of an application for partial exemption in accordance with this division, the City Assessor shall provide written notification to the owner of any such real estate of the base value of the qualified structure. Such notice shall also notify the property owner that such property owner may appeal the base value in accordance with the applicable provisions of this Code or State law, in which case the base value as subsequently determined by the City Assessor, the City of Richmond Board of Review of Real Estate Assessments or a court of competent jurisdiction upon such appeal shall be the base value for purposes of this section. (d) The applicant shall bear the burden of proof to show that the property for which a partial exemption has been applied complies with all requirements established by this division. The Director of Housing and Community Development shall require documented proof of eligibility and compliance with the requirements of this division, and, in such cases, the applicant shall present documentation satisfactory to the Director of Housing and Community Development. (Code 2015, § 26-408.6; Code 2020, § 26-414; Ord. No. 2014-117-90, § 3, 5-27-2014; Ord. No. 2019-338, § 2(26-408.6), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-395 Amount of exemption; basis for taxes during construction.

Sec. 26-395. - Amount of exemption; basis for taxes during construction. (a) The amount of the partial exemption from real property taxation provided for by this division shall be an amount equal to the increase in assessed value resulting from the rehabilitation, renovation or replacement of a qualified structure for multifamily dwelling or single-family dwelling use as determined by the City Assessor. This amount only, on a fixed basis, shall constitute the exemption, notwithstanding subsequent market appreciation or depreciation, assessment, reassessment or future improvements. In no event shall the exemption exceed the increase in assessed value resulting from the rehabilitation, renovation or replacement of a qualified structure for multifamily dwelling or single-family dwelling use as determined by the City Assessor. The exemption shall commence on January 1 of the year following completion of the rehabilitation, renovation or replacement of a qualified structure for multifamily dwelling use and shall run with the real estate for 15 years. (b) No partial exemption under this division shall be issued during the construction phase of the rehabilitation, renovation or replacement of a qualified structure for multifamily dwelling or single-family dwelling use. Prior to completion of the new structure or other improvements, taxes shall be based upon the full assessed value of the property when assessed. (Code 2015, § 26-408.7; Code 2020, § 26-415; Ord. No. 2019-338, § 2(26-408.7), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-396 Penalty for nonpayment of real estate taxes; forfeiture of exemption.

Sec. 26-396. - Penalty for nonpayment of real estate taxes; forfeiture of exemption. Whenever the owner of real property which has qualified for partial exemption of real estate taxes under this division fails to pay one-half of the nonexempted amount of real estate taxes on the property on or before January 14 of any tax year or the remaining one-half of such amount on or before June 14 of any tax year: (1) A penalty of ten percent shall be applied to any such installment due on the taxes for the full assessed value of the property for that tax year; (2) The partial exemption for that tax year and all subsequent years of any remaining exemption period shall be forfeited; and (3) The annual credit issued for that tax year and all subsequent years of any remaining exemption period shall be canceled and shall be of no effect. The partial exemption claimed for any tax year shall be retained if payment of the nonexempt amount, plus the ten percent late payment penalty and interest at ten percent per annum on the nonexempt amount due, is received by the Collections Division of the Department of Finance on or before June 30, or the last business day preceding June 30 of the tax year in question if June 30 falls on a weekend. (Code 2015, § 26-408.8; Code 2020, § 26-416; Ord. No. 2019-338, § 2(26-408.8), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-397 Land book.

Sec. 26-397. - Land book. Nothing in this division shall be construed so as to permit the City Assessor to list upon the land book any reduced value due to the exemption provided by this division. (Code 2015, § 26-408.9; Code 2020, § 26-417; Ord. No. 2019-338, § 2(26-408.9), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-398 Demolition.

Sec. 26-398. - Demolition. The exemption provided in this division shall not apply where rehabilitation is achieved through demolition and replacement of an existing structure that is a Virginia registered landmark or is determined by the Virginia Department of Historic Resources to contribute to the significance of a registered historic district. (Code 2015, § 26-408.10; Code 2020, § 26-418; Ord. No. 2019-338, § 2(26-408.10), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Richmond, Va., City Code § 26-399 False statements.

Sec. 26-399. - False statements. The making of any false statement in any application, affidavit or other information supplied for the purpose of eligibility determination under this division shall constitute a Class 2 misdemeanor. (Code 2015, § 26-408.11; Code 2020, § 26-419; Ord. No. 2019-338, § 2(26-408.11), 1-27-2020; Ord. No. 2020-130, § 2, 6-22-2020)

Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH26TA_ARTVLECOPRTA_DIV3PAEXCERESTREESTAFetched: 11/8/2026